Swisscom completes Vodafone Italia acquisition

Swisscom said that the merger combines Fastweb and Vodafone Italia’s operations under the new corporate brand Fastweb + Vodafone

Swiss carrier Swisscom has successfully completed its acquisition of Vodafone Italia after securing all necessary regulatory approvals.

The merger combines Fastweb and Vodafone Italia’s operations under the new corporate brand Fastweb + Vodafone, said Swisscom

The acquisition was finalized on December 31, 2024. Swisscom noted that the newly merged entity, Fastweb + Vodafone, aims to generate substantial value for stakeholders by leveraging economies of scale, cost efficiencies and anticipated annual synergies of approximately €600 million ($619.5 million).

The partnership combines Fastweb’s fixed-line services with Vodafone Italia’s robust position in the Italian mobile market.

Walter Renna, CEO of Fastweb + Vodafone, said: “This marks a transformative moment for Italian telecommunications. The synergy of our two organizations positions us to lead Italy towards a more sustainable digital future, empowering citizens, enterprises, and public institutions alike.”

Christoph Aeschlimann, CEO of Swisscom, added: “The completion of this acquisition enhances Swisscom Group’s presence in Italy and ensures long-term value creation for all stakeholders through stronger cash flows and dividends. Simultaneously, we remain fully committed to our Swiss operations, continuing to invest in innovation, service excellence, and advanced infrastructure.”

Swisscom also noted that the integration of Fastweb and Vodafone Italia begins immediately, with the combined entity managed by a newly appointed Executive Committee while retaining the existing commercial brands Fastweb, Vodafone, an ho. continue to be in place.

As the transaction closed in 2024, Swisscom will incur costs of up to €200 million related to the transition of Fastweb’s mobile customers to Vodafone Italia’s network and the termination of existing MVNO and network-sharing agreements. These expenses, part of previously disclosed integration costs, will be reflected in Swisscom’s 2024 financial results.

Swisscom has revised its 2024 EBITDA guidance to CHF 4.3-4.4 billion ($4.73-4.84 billion). Free cash flow, revenue, CAPEX, and dividend projections for 2024 remain unchanged, the Swiss operator added.

In March 2024, Swisscom confirmed it had entered into binding agreements with U.K carrier Vodafone Group for the acquisition of 100% of Vodafone Italia for EUR 8 billion on a debt and cash free basis. At that time, Swisscom said it aimed to merge Vodafone Italia with Italian telco Fastweb, Swisscom’s subsidiary in Italy.

The combination of Fastweb’s end-to-end managed wireline network and Vodafone’s 5G-based Fixed Wireless Access (FWA) will enable the creation of a converged carrier in the domestic market, Swisscom said, adding that the increased scale, more efficient cost structure and significant annual run-rate synergies will enable the combined entity to unlock significant value for all stakeholders and offer innovative converged services.

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