Vodafone has reached an agreement to purchase Spanish cable company Ono, in a deal valuing Spain's second-largest provider of broadband internet, pay television and fixed telephony services at €7.2bn (approximately $10 billion), including debt.
The deal, which is expected to be announced on Monday, ends plans for Ono to list in Madrid, according to people with knowledge of the negotiations.
Vodafone declined to comment. Ono's shareholders, private equity groups Providence Equity Partners, Thomas H Lee Partners, CCMP Capital Advisors and Quadrangle Capital, also declined to comment.
The purchase will boost Vodafone's mobile business in Spain with fixed line services and pay-TV. It will allow it to cut the costs of carrying its calls around the country. It is the British telecoms group's second acquisition in six months. In September, it agreed to buy a controlling stake in German cable operator Kabel Deutschland. The Ono deal will also complement Vodafone's agreement with French telecoms operator Orange to build out fibre networks in Spain.