Given the company's recent struggles, this is the kind of deal investors wanted. It also helps that management believes that it can generate revenues of around 1 billion euro ($1.4 billion) once synergies related to distribution, marketing and cross-selling are achieved.

This is Vodafone's second acquisition in six months. Back in September, the company acquired a controlling stake in German cable operator Kabel Deutschland.

The Ono deal, which is expected to be accretive to adjusted earnings per share, also complements Vodafone's agreement with French telecom operator Orange to build out fibre networks in Spain.

All told, Vodafone's management hit a home run. It remains to be seen how well the company can execute to extract value from its investment. But by every measure, this was a well thought-out deal.

The stock is still down about 5% so far this year, so these shares look cheap, given the value-creating opportunity that management expects Ono to bring.

At a minimum, sometime in the second half of the year, Vodafone should regain its 52-week high, which suggests possible upside of about 12%.

At the time of publication, the author held no position in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

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