Telefónica, which operates O2 in the UK, said it has wrapped up its acquisition of VoIP provider Jajah. The Spanish telecom's $207 million cash transaction still hinges on a clearance by CNC, the Spanish competition authority.
The deal is expected to bolster Telefónica's communications offerings while creating new opportunities in the VoIP market, says VoIP Monitor. Matthew Key, Chairman and CEO of Telefónica said:
The acquisition of Jajah broadens the scope of our communications offering and opens up new capabilities in the voice communication space. People using social networking sites such as Twitter now have an even wider range of communications channels available – and have the option of speaking directly to each other as well as communicating by text or keyboard.
Jajah, which competes with the likes of Skype, will continue to operate under its current brand while Telefónica sorts out how to integrate the VoIP service without cannibalizing its own offerings, The Register reports.