C33. Business combinations

Minor business combinations during the period

On March 1, 2016, Telia Company acquired all shares in the Swedish company Telecom3 Fibernät i Sverige AB. The cost and net cash outflow of the combination was SEK 26 million, all attributable to goodwill. On July 1, 2016, Telia Company acquired a business, consisting of fibernetworks from Comne Work AB. The cost of the acquisition was SEK 26 million. On December 30, 2016, Telia Company acquired a minor business from the Estonian company AK Süsteemid OÜ, consisting of IT Hosting and Workplace management solutions. The cost of the acquisition was SEK 8 million.

Business combinations after the reporting period

On February 1, 2017, Telia Company acquired all shares in Fält Communications AB (Fältcom), a company in the Nordic connected public transportation market. The acquisition will position Telia Company to become the leading provider of Smart Public Transport services whilst laying a foundation for further expansion in the Smart Transport & Logistics and Smart City space. The preliminary cost of the combination, preliminary fair values of net assets acquired and goodwill are presented in the table below.

SEK in millions

Fältcom

Cost of combination

151

Whereof cash consideration

144

 

 

Fair values of net assets acquired

 

Property, plant and equipment

8

Other non-current assets

6

Current assets

32

Total assets acquired

47

   

Non-current liabilities

0

Current liabilities

12

Total liabilities assumed

13

Total fair value of net assets acquired

34

Goodwill

117

 

The net cash flow effect of the business combination was SEK 138 million (cash consideration SEK 144 million less cash and cash equivalents in Fältcom SEK 6 million). Transaction costs amounted to SEK 4 million. The total cost of combination and fair values have been determined provisionally, as they are based on preliminary appraisals and subject to confirmation of certain facts. Thus, the purchase price accounting is subject to adjustment.

On March 1, 2017, Telia Company acquired all of the shares in the Swedish company C-SAM AB, a company that develops and maintains fiber and cable networks. The cost of the acquisition was SEK 93 million. Since the acquisition was completed on March 1, 2017, fair values for the net assets acquired have not yet been determined and additional information is therefore not disclosed in this annual report.