Deutsche Telekom (DT) has closed its €546m (US$743m) acquisition of infrastructure-based telco GTS Central Europe, allowing it to begin operational integration.
The German incumbent said today that the deal, cleared by the European Commission in…
Deutsche Telekom (DT) has closed its €546m (US$743m) acquisition of infrastructure-based telco GTS Central Europe, allowing it to begin operational integration.
The German incumbent said today that the deal, cleared by the European Commission in April, closed on 30 May. The Bonn-based company expects the integration in the Czech Republic, Poland and its own international business unit to be completed by October and legal unity to occur on 1 January 2015.
DT board member for Europe and Technology Claudia Nemat said: “With the acquisition complete, we look forward to integrating GTS’ business-to-business expertise with our industry-leading technologies and vast European network to become the provider of choice for business customers.” She added that the deal forms part of the company’s strategy to boost its local and pan-European B2B business, which includes international wholesale customers.
Danny Bottoms, GTS’s CEO prior to the acquisition, will continue to lead the operation.
DT agreed to acquire GTS, which provides telecoms and ICT services to business, carrier and government customers, from a consortium of private equity firms in November 2013. GTS’ 26,000km fibre optic network stretches throughout CEE, significantly boosting DT’s fixed-line infrastructure in the region.
DT and GTS have overlapping activities in several markets in Poland, Hungary, Romania and the Czech Republic. GTS’ Slovak assets were retained by the sellers as part of the transaction.
GTS reported revenues of €376m in 2013 and EBITDA of €104m.
