Acquisitions have been a quick way for major tech giants to expand their influence as well as scope of their activities. Now, UK mobile giant Vodafone has revealed plans that it intends to buy off Cable & Wireless which is a commercial network provider. It is expected that Vodafone may realize its plans at a cost of $1.7 billion.
One may wonder why does a huge company like Vodafone is going after Cable & Wireless? Well, with the acquisition of C & W, Vodafone will then have a nation-wide fiber-optic network which can be immensely beneficial for the company.
Moreover, C & W has an impressively large portfolio of business customers. All these fall in Vodafone’s hands if the deal is finalized. Finally, through C & W’s acquisition, Vodafone also gets a stake in the undesea cables which are currently connecting 150 countries. We are not sure what will Vodafone do with the undersea cables’ stake since at present, it doesn’t seem to be of much use to the company.
By bagging this deal, Vodafone will be able to take a lot of load off its main network and at the same time, get a lot of business clients. C & W has been offering retail broadband and cable services up till now. However, it would be a most improbable occurrence if Vodafone decides to continue offering these services after the acquisition.