200 Vodafone Group Plc Annual Report 2026
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Acquisition of Cloudforce 1 GmbH On 17 December 2025, the Group announced it had completed the acquisition of Cloudforce 1 GmbH (‘Skaylink’) for a total cash consideration of €175 million. The aggregate fair values of goodwill, identifiable assets, liabilities recognised on acquisition were €107 million, €110 million and €42 million, respectively. The acquisition enhances the Group’s cloud consulting and managed services capabilities and has been accounted for as a business combination in accordance with IFRS 3, with Skaylink consolidated from the acquisition date. Other transactions with non-controlling shareholders in subsidiaries The aggregate net cash received in respect of other transactions with non-controlling shareholders in subsidiaries was €100 million (2025: €8 million) including €125 million (2025: €25 million) received from Accenture Holdings B.V. for a non-controlling interest in Vodafone Shared Operations Limited.
27. Acquisitions and disposals (continued) A purchase price allocation has been performed as at 31 May 2025, the acquisition date, and is set out in the table below. €m Other intangible assets 1 2,555 Property, plant and equipment 3,457 Inventory 43 Trade and other receivables 867 Cash and cash equivalents 27 Current and deferred taxation 88 Borrowings (4,160) Trade and other payables (675) Provisions (69) Net identifiable assets acquired 2,133 Non-controlling interests 2 (1,045) Goodwill 3 1,358 Total consideration 4 2,446 Notes: 1. Identifiable intangible assets of €2,555 million consisted of acquired licences of €975 million, computer software of €887 million, customer relationships of €467 million and brand of €226 million. 2. Measured at the non-controlling shareholders’ proportion of the net fair value of the identifiable assets acquired, liabilities and contingent liabilities assumed. 3. The goodwill is attributable to future profits to be generated from new customers and the synergies expected to arise after the Group’s acquisition of the business. 4. Includes closing adjustments of €178 million payable to Hutchison, of which €31 million was paid in the year. Transaction costs of €30 million were charged to Other (expense)/income in the Group’s consolidated income statement in the year ended 31 March 2026. From the date of acquisition, the acquired entities have contributed €2,302 million of revenue and a loss of €551 million is included in the loss for the financial year of the Group. If the acquisition had taken place at the beginning of the financial year, Group revenue would have been €40,957 million and the Group loss for the financial year would have been €155 million. As part of the merger of Vodafone and Three in the UK, the Group gave up a 49% interest in Vodafone UK to Hutchison, with consideration taking the form of 51% of Three UK’s equity, subject to closing adjustments that will be settled in cash. The Group recognised non-controlling interests of €1,208 million and a net gain of €603 million in retained earnings in relation to this transaction. Additionally, non-controlling interests of €348 million were recognised in relation to Hutchison’s proportionate contribution of the £600 million equity funding raised by VTHL on closing, this being settled by way of offset against amounts due to Hutchison.
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