Spanish electric utility company Endesa struck a €90 million deal to acquire Energia Colectiva, the digital energy retail arm of MasOrange, as the companies aim to merge energy and telecoms services for customers across Spain.

Through its subsidiary Endesa Energia, the utility will take full ownership of Energia Colectiva from Xfera Moviles, a MasOrange group company. The deal is subject to regulatory approval and standard closing conditions. Energia Colectiva currently serves over 350,000 electricity and gas customers across Spain.

The acquisition will allow both companies to cross-sell products and expand their customer bases. Under the deal, Endesa will begin offering MasOrange’s fibre and 5G services to its 7 million free-market energy customers, while MasOrange will push Endesa’s energy products to its 30 million-strong user base and more than 1,500 retail locations.

The companies estimate the deal could benefit more than 1 million customers, who will gain access to personalised offers and competitive bundled services combining energy and telecom solutions.

Alberto Galaso, deputy chief of new businesses at MasOrange said the tie-up “will allow us to advance in our successful diversification strategy and offer our customers value-added services beyond connectivity”.

Meanwhile, Endesa chief Jose Bogas described the move as a “natural step” in the company’s strategy to bring technology to customers, adding that the deal combines “the best of two worlds: MasOrange’s connectivity, with Endesa’s experience, trust and innovation in the energy field”.