Vodafone acquired Cable & Wireless Worldwide in 2012 for £1.8 billion. This deal marked a significant milestone in the company's growth strategy.
Cable & Wireless Worldwide was a leading provider of telecommunications services in the UK, with a strong presence in the business market.
The acquisition gave Vodafone access to Cable & Wireless Worldwide's extensive fibre-optic network, which spanned over 13,000 miles. This network expansion enabled Vodafone to offer faster and more reliable internet services to its customers.
The deal also brought significant cost savings for Vodafone, with estimates suggesting that it would achieve annual synergies of £200 million.
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Acquisition
Vodafone acquired telecoms company Cable & Wireless Worldwide for £1bn, putting the mobile operator in direct competition with BT.
The acquisition is set to make Vodafone a leading integrated player in the enterprise segment in the UK and internationally.
Vodafone expects to find attractive network and other cost-saving opportunities as a result of the takeover.
A reduction in staff is likely to occur once the acquisition is complete, with job cuts possible in departments with administrative or operational overlap.
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Company Overview
CWW is a multinational telco that offers data and hosting services, as well as legacy voice services.
The company generates £2.3bn in revenue each year globally, with 38 percent of that coming from UK businesses.
CWW has a significant presence in the UK fibre network, with 20,500km of fibre in the country.
The company's fibre network also spans internationally, with 425,000km of fibre in 35 countries.
CWW owns a number of submarine cables around the world, along with many datacentres.
The company has 127 points of presence in 35 countries, providing a wide reach for its services.
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Background
Cable & Wireless Worldwide was a UK-based telecommunications company that was formed in 2010 through the merger of Cable & Wireless and NTL:Telewest.
The company had a long history dating back to 1868, when it was founded by Julius Reuter as a news agency.
Cable & Wireless Worldwide was a leading provider of telecommunications services in the UK and across the globe.
The company's roots went back to the early days of telecommunications, when it was involved in laying undersea cables to connect Europe and Asia.
Financials
Cable & Wireless Worldwide was a major player in the UK's telecommunications industry, but its financial struggles were well-documented.
The company's revenue peaked at £4.5 billion in 2007, but by 2010, it had dropped to £2.8 billion.
Cable & Wireless Worldwide's debt stood at £2.3 billion in 2010, a significant increase from £1.4 billion in 2007.
The company's net loss in 2010 was £1.1 billion, a stark contrast to its net profit of £145 million in 2007.
Cable & Wireless Worldwide's share price plummeted from 45p in 2007 to just 1.5p in 2010.
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