Vodafone Group has decided to acquire CYTA Telecommunications Hellas, a provider of fixed and mobile telecommunication services in Greece, for a total enterprise value of €118 million.

The strategy of Vodafone is to expand its fixed network presence in Europe and tap the new business growth opportunities.

A latest research report in Budde says that the dominant telecom operator in Greece remains the incumbent telco Cosmote, a part of Deutsche Telekom. Three telcos are planning to invest €250 million to meet EU broadband targets.

CYTA Hellas owns a fibre optic network and offers mobile services through an MVNO with Vodafone Greece. CYTA Hellas has around 300,000 fixed broadband customers with 8 percent market share and around 40,000 mobile customers in Greece.

The acquisition provides scale and momentum to Vodafone’s fixed line and convergence strategy in Greece. Earlier, Vodafone acquired Hellas Online in 2014. The latest acquisition will assist Vodafone Greece to expand its fixed network, increase its customer base and secure additional capabilities.