MADRID (AFP) - – Spain's Telefonica said Wednesday its 02 unit had bought Jajah, a provider of Internet-based phone service with headquarters in the US and Israel, for 145 million euros (207 million dollars).
The all cash deal is subject to approval by Spain's antitrust authorities, the former state monopoly said in a statement.
Like Skype, Jajah allows its users to make free calls amongst its users over the Internet or very cheap calls to a fixed-line or mobile number.
The company, which has 25 million clients worldwide, had reportedly sparked interest from Microsoft and Cisco. It was founded in 2005 by Austrian entrepreneurs Roman Scharf and Daniel Mattes.
"The acquisition of Jajah broadens the scope of our communications offering and opens up new capabilities in the voice communication space," the chief executive of Telefonica Europe, Matthew Key, said in the statement.