TDC and MTG Nordics are to merge to create what they claim is the first European media and communications provider.
MTG Nordics owns broadcasting, streaming and distribution operations in Sweden, Denmark, Norway and Finland, as well as a Studios division, which produces the likes of TV programmes and commercials.
The deal sees the Denmark-based telco offer a 28 percent stake of its business and SEK3.3 billion in cash for all of MTG Nordics’ shares.
It will look to leverage TDC’s three million mobile, 1.7 million TV and 1.6 million broadband customers in Denmark and Norway, as well its associated networks.
The combined business will have close to three million TV subscribers across Sweden, Denmark, Norway and Finland and a potential reach of more than 10 million households.
Based on 2017 results, it will have revenues of DKK 30.6 billion and EBITDA of DKK 9.6 billion.
TDC Group CEO Pernille Erenbjerg will become CEO of the combined business, with MTG Nordic Entertainment Chairman Anders Jensen taking on a Deputy Group CEO role.
They promised to be the largest investor in content in the Nordic region and create “enhanced and more personalised entertainment solutions”.
Further, they plan to develop an open platform to distribute local and international content to consumers.
Erenbjerg said: “The combination will significantly strengthen our innovation capabilities enabling us to provide Nordic consumers with great quality content and much more flexible next generation entertainment solutions.”
Jensen added: “We will create a new, truly Nordic company with the intention to further invest in unique local content, strengthening our combined entertainment and access products and the Nordic content market as a whole.”
The deal is subject to approval by the shareholders of both companies and regulators.
It is expected to close in the second half of 2018.