India's Tata Communications ended its interest in the firm last week, leaving Vodafone as the only interested buyer. The phone giant will pay 38p per C&WW share, giving the firm a value of £1.04bn.
The takeover adds a UK fixed-line network to Vodafone's existing mobile network, and give the company a much greater capacity.
The acquisition is likely to lead to a number of job losses, with Vodafone saying that there would be a “reduction of headcount” but no further details.
Vodafone chief executive Vittorio Colao said in a statement today, "The acquisition of Cable & Wireless Worldwide creates a leading integrated player in the enterprise segment of the UK communications market and brings attractive cost savings to our UK and international operations."
In the year to 31 March 2011, C&WW reported revenues of £2.26bn and a pre-tax profit of £140m.
Read economia’s interview with Andy Halford, Vodafone chief financial officer, here