Deutsche Telekom (DT) is reportedly close to reaching an agreement to buy GTS Central Europe for about €500m (US$674.8m). Germany’s Manager Magazin wrote that DT is “poised” to take over the fixed-line operator, being “largely in agreement”…
Deutsche Telekom (DT) is reportedly close to reaching an agreement to buy GTS Central Europe for about €500m (US$674.8m).
Germany’s Manager Magazin wrote that DT is “poised” to take over the fixed-line operator, being “largely in agreement” with its private equity owners, which include Columbia Capital, M/C Venture Partners, Innova Capital, HarbourVest Partners, Oak Investment Partners and Bessemer Venture Partners.
Citing sources familiar with the situation, the report stated that DT is currently reviewing its portfolio in Europe and aims to offer customers an expanded range of fixed and mobile services.
Spokespeople for DT and GTS declined to comment on the speculation, citing company policy.
DT is said to have had its eye on GTS – which provides telephone and internet services to business customers in the Czech Republic, Hungary, Poland, Romania and Slovakia – for some time.
In late May, the telco was said to have hired Credit Suisse and Deutsche Bank to advise it on the potential deal, while GTS reportedly mandated Goldman Sachs.
Meanwhile, the CEO of Polish telco Netia, Miroslaw Godlewski, told reporters in August that his company has always considered GTS an interesting takeover target.
Other reports in August said US telco Level 3 Communications had also submitted a bid for the company.
According to its website, GTS generated a turnover of €387m in 2012, EBITDA of €103m, and a free cash flow of €53m.
