2degrees buys Snap for fixed-line play

New Zealand mobile challenger 2degrees is buying its fixed-line broadband partner, Christchurch-based Snap.

New Zealand's third-largest mobile operator, 2degrees, is boosting its ability to service business customers by buying Christchurch-based internet service provider Snap.

Snap has been a partner of 2degrees for the past two years, offering complementary fixed-broadband services.

The combination will also be more able to vie for fibre market share as New Zealand's Ultra-Fast Broadband (UFB) network rollout reconfigures the industry.

"One thing we've learned in the last couple of years, apart from the fact that we work well with 2degrees, is that there is a limited window of opportunity to win business as the UFB networks are rolled out," Snap chief executive Mark Petrie said.

"A fixed-mobile offer allows us to put our best foot forward, and 2degrees is the best company to drive that growth."

Petrie will join 2degrees' leadership team.

The price paid for Snap has not been disclosed; however, one media report put it at NZ$26 million, including NZ$10 million in cash.

"Snap provides the perfect complement to our mobile offering, and will allow us to deliver the total package that our customers -- and theirs -- have been asking for," 2degrees' chief executive Stewart Sherriff said.

The combined businesses will have around 900 staff members.

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