According to the International Business Times , the deal, is to be officially completed by the end of the year, will be settled in cash and shares.
While the deal has been rumoured for a while, it is now official. It looks like once the agreement has been settled, the German Deutsche Telekom will have a 12 percent stake in the company and will be given the right to appoint one board member.
Orange will also get a four percent stake.
BT will raise £1 billion of the deal through issuing new shares and debt financing, with the view of making £360 million of capital expenditure in four years savings as a result of the deal.
BT CEO Gavin Patterson said: “This is a major milestone for BT as it will allow us to accelerate our mobility plans and increase our investment in them. The UK’s leading 4G network will now dovetail with the UK’s biggest fibre network, helping to create the leading converged communications provider in the UK. Consumers and businesses will benefit from new products and services as well as from increased investment and innovation.”
The deal comes after broadband providers have started to offer quad-play packages, providing customers with TV, broadband, landline and mobile services in one bundle.
BT will now join Virgin Media and TalkTalk, who already offer these deals to UK consumers.
CEO of EE, Olaf Swantee added: “Joining BT represents an exciting next stage for our company, customer, and people. In the last few years alone, we have built the UK’s biggest, fastest and best 4G network, significantly advancing the digital communications infrastructure for people and businesses across Britain.”
Following in BT’s footsteps is Sky, who struck a deal with Three Mobile last week to offer similar quad-play deals in 2016.