Englewood, Colorado – Liberty Global, Inc. and Virgin Media Inc. have entered into an agreement, subject to shareholder approvals, to which Liberty Global will acquire Virgin Media in a stock and cash merger valued at approximately USD$23.3 billion.
The deal between the two companies was made with several objectives, including being one of the world’s leading broadband communications company covering millions of homes across 14 countries. The combined company will focus on the strongest and most strategic markets in Europe; building complementary strengths across product suite, with aligned triple-play products, roadmap and expertise across digital TV, broadband and mobile services; and to develop on their potential to monetise customer base with opportunity to deliver current customers enhanced bundled and premium services.
“Adding Virgin Media to our large and growing European operations is a natural extension of the value creation strategy we’ve been successfully using for over seven years. After the deal, roughly 80% of Liberty Global’s revenue will come from just five attractive and strong countries – the UK, Germany, Belgium, Switzerland and the Netherlands,” said Mike Fries, President and CEO of Liberty Global. “Like all of our strategic acquisitions we expect this combination to yield meaningful operating and capex synergies of approximately $180 million per year upon full integration. But just as importantly, Virgin Media’s market leading innovation and product expertise, particularly in mobile and B2B, will accelerate our own development of these business segments.”
As part of its acquisition of Virgin Media, Liberty Global will relocate from Delaware to the United Kingdom by becoming a subsidiary of a new holding company, a UK plc. Liberty Global’s current headquarters and other principal offices will remain in place while their Board of Directors will continue to form the board of Liberty Global, with the addition of one Virgin Media Director to be named prior to the closing.