Northstream assesses the potential for a mobile-fixed convergence M&A deal

A European mobile operator was evaluating the potential acquisition of a fixed operator. As a first step in the process the client engaged Northstream to deliver an analysis of the acquisition target as well as assessment of the strategic fit and potential synergies.

Northstream analyzed the fixed operator and its business – including financial performance, product and service portfolio, market outlook, customers, growth strategy, network assets, risks etc. The analysis used as inputs public information available about the company and was synthesized with Northstream’s insights and knowledge of the telecom industry.

During the second part of the project, Northstream assessed the weaknesses of both companies and the drivers for a potential acquisition. We evaluated benefits and synergies on the commercial side that can bring revenue increase opportunities and how the acquisition of the fixed operator’s assets can result in cost savings. The project was also put in the context of the overall market development and trends of mobile-fixed convergence and how that affected the long-term strategic positioning of the client.

Northstream provided conclusions and recommendations to the client’s management team regarding whether to proceed further in the acquisition process.