France Telecom-Orange announced on Friday announced  that it has reached an agreement with Apax Partners for investment funds advised by Apax Partners to sell 100% of Orange Communication S.A. (“Orange Switzerland”), France Telecom’s Swiss mobile subsidiary.

In a statement it said that the parties agreed on an enterprise value of CHF2.0 billion (€1.6 billion), corresponding to a multiple of 6.5x Orange Switzerland’s estimated 2011 EBITDA.

The transaction, which is subject to the approval of the Swiss competent authorities will be submitted to the Board of Directors of France Telecom for approval during the week commencing on January 9, 2012.

Upon completion, this transaction will constitute a significant step in the optimization of France Telecom's assets portfolio announced in May 2011.

Orange Switzerland was established in 1999 and became one of the leading mobile operators in Switzerland. The company posted revenue of CHF1.3 billion (€1.1 billion) in 2010 and had a customer base of 1.6 million at the end of September 2011. The company employs approximately 1,200 people.