Tiscali 2003 Annual Report Download - page 31

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3232
Extraordinary operations
In 2003 Tiscali made a series of acquisitions, with the aim of strengthening its market positioning in certain countries.
Airtelnet
In January 2003 the Tiscali Group acquired Airtelnet, the Internet business of Vodafone Group Plc in Spain for EUR 9.86
million, paid for in newly issued Tiscali shares (2,162,139 shares). The acquisition consolidated Tiscali’s position on the
Spanish market and boosted profitability. Airtelnet has 110,000 active dial-up users, of which around 5,000 are business
customers. The transaction took place at an important time for Tiscali España, as it was in the midst of restructuring its own
activities.
Wanadoo Belgium S.A.
In February 2003 Tiscali acquired Wanadoo Belgium S.A. via its subsidiary Tiscali Belgium N.V.. The Wanadoo Group
Company cost EUR 9.5 million, and was paid for in newly-issued Tiscali shares (2,290,924 shares). Wanadoo Belgium is
a leading ISP and portal, with around 85,000 active users, of which 25,000 were ADSL subscribers at the time of the tran-
saction. The acquisition of Wanadoo Belgium delivered substantial synergies and economies of scale, mainly as a result of
the migration of traffic generated by Wanadoo Belgium users onto Tiscali’s IP network, which had an immediate impact on
profit and loss figures. In addition, Tiscali has consolidated its position on the Belgian market, particularly as regards the
broadband market.
Tiscali Internet Limited
In March 2003 Tiscali acquired UK Company Tiscali Internet Ltd and its dial-up user base of over 13,000, for around EUR
600,000 paid for in newly-issued Tiscali shares (152,380 shares).
Home.se AB
In April 2003, Tiscali acquired Home.se AB in Sweden, with around 35,000 active dial-up users. This operation increased Tiscali’s
revenues and expanded its Swedish user base and product range, which at the time of the acquisition did not include kickback
revenues. The acquisition cost was approximately EUR 1.3 million, which was paid for via the issue of Tiscali ordinary shares
(333,189 shares).
Nextra S.p.A.
On 18 March 2003, Nextra S.p.A. was acquired from the Telenor Group. The acquisition cost was approximately EUR 2.4 mil-
lion, which was paid for in newly-issued Tiscali shares (643,950 shares). Nextra S.p.A. is one of Italy’s leading suppliers of
Internet services to the corporate sector, with a reputation for quality in providing the latest IP services, such as fixed and wire-
less Internet access, hosting, virtual private networks (IP-VPNs) and messaging services. The Company has around 3,000 busi-
ness clients.
EUnet EDV und Internet Dienstleistungs AG
In May 2003, Tiscali acquired Austrian B2B Company EUnet EDV und Internet Dienstleistungs AG for approximately EUR 15.9
million, paid for in newly-issued Tiscali shares (3,604,899 shares).
This acquisition represented a turning point for Tiscali on the Austrian market, making its operation there a market leader in pro-
viding Internet services to corporate clients.