UPC Acquires Eitele Østfold And Vestfold

United Pan-Europe Communications (UPC) today announced that it has agreed terms for the acquisition of 100% of the equity of ElTele Østfold and Vestfold from the energy companies Fredrikstad Energi as, Østfold Energiverk and Hafslund. ElTele Østfold and Vestfold currently have approximately 300 kilometers of fibre and approximately 125 business customers between them and are among the leading providers of broadband services to business customers in the Østfold, Vestfold, Telemark and Buskerud regions of Norway. UPC paid NKR 320 million (Euros 39.7 million) for the companies. Following the acquisition the business activities of the company will be incorporated into UPC's Priority CLEC division whilst the infrastructure will be managed by UPC Norway and used to service both business and residential customers.

Lars Helgerud Andersen, Managing Director of UPC Northern Europe Region, said: "The ElTele Østfold and Vestfold properties form a strong strategic fit with UPC's existing operations in Norway. The acquisition is an important step in the development of Priority CLEC's activities in Norway. The new companies' managements have well developed expertise in the delivery of broadband services to both residential and business subscribers in their respective regions of the country. This acquisition accelerates the impetus with which UPC will introduce its high speed internet and cable telephony services which it launched in Norway last month."

Runar Hansesætre, Managing Director of ElTele Østfold said: "With UPC we will be able to improve the package we offer to regional customers who have national and international communication needs. This agreement will also expand the potential for us to offer our already competitive products to a wider geographic audience. Joining the UPC family will give us the best opportunity to further develop and improve the competence we have built in ElTele".