Deutsche Telekom (DT) will acquire GTS Central Europe for €546m (US$730m), boosting its fixed-line infrastructure in the region.
DT is buying the Warsaw-based infrastructure telco from a consortium of international private equity firms, including…
Deutsche Telekom (DT) will acquire GTS Central Europe for €546m (US$730m), boosting its fixed-line infrastructure in the region.
DT is buying the Warsaw-based infrastructure telco from a consortium of international private equity firms, including Columbia Capital, HarbourVest Partners, Innova Capital and M/C Partners, the German incumbent said in a statement.
The deal will give DT landline infrastructure in Poland, the Czech Republic, Hungary and Romania. The sellers will retain GTS’ Slovak assets.
Speculation on the German telco’s interest in GTS started some time ago, with media reporting in late September that the parties were close to striking a deal. However, recent reports said talks were close to collapsing due to disagreement on price.
US telco Level 3 Communications also reportedly submitted a bid for GTS, while Polish telco Netia expressed interest in the company.
In its statement, Bonn-based DT said the deal, subject to regulatory approvals, boosts its ability to provide pan-European telecoms services for business customers and integrated products in countries where its infrastructure is mobile centric.
DT CFO and incoming CEO Timotheus Hoettges noted: “GTS is a further element for developing our integrated market position comprising mobile and fixed-line network services. Strengthening our position with business customers is also a core element of our strategy.”
DT board member for Europe and technology, Claudia Nemat, described GTS as an “ideal” addition to the company’s portfolio, saying its mobile-centric units in the Czech Republic and Poland, which operate under the T-Mobile brand, will benefit most from the added fixed-line infrastructure.
GTS reported revenues of €347m and EBITDA of €87m for 2012, excluding the Slovak assets.
