After all of the rumours over the last few months we finally have official news, BT has acquired EE for the sum of £12.5 billion.
With the acquisition, BT will now control services in the landline, broadband, TV and mobile markets, all of which should hopefully help it build more traction.
The current owners of EE, Orange and Deutsche Telekom will be selling the business to BT, with Deutsche Telekom retaining 12 percent of the new business and a seat on the board, Orange will get a 4 percent share and £3.4 billion incase once the deal is completed.
BT plans to raise £1 billion through a placing of new shares in order to raise the capital, and have also said that they plan to save a massive £360 million a year in operating costs and capital investment within a year of the deals complete, which they say should generate an extra £1.6 billion in sales.
The biggest attraction however is EE’s size, with the widest coverage of 4G in the UK, BT will quickly become the market leader for 4G, serving 7.7 million subscribers.
The deal is said to be finalised by March next year.