Hungary’s Magyar Telekom has agreed to buy alternative telecoms provider GTS Hungary from Deutsche Telekom for a cash and debt free purchase price of about €42m (US$48m) in an effort to boost its position in the business segment.
The Hungarian…
Hungary’s Magyar Telekom has agreed to buy alternative telecoms provider GTS Hungary from Deutsche Telekom for a cash and debt free purchase price of about €42m (US$48m) in an effort to boost its position in the business segment.
The Hungarian telco’s board of directors approved the share purchase agreement today and expects to close the deal in the second quarter, according to a company statement.
Magyar Telekom, in which Deutsche Telekom is the majority shareholder, said it plans to fully integrate GTS Hungary’s operation within a couple of years. This will create opportunities to cross sell fixed and mobile products, better leverage wholesale and IT operations and enable cost synergies, it added.
According to Magyar Telekom, GTS Hungary delivered revenues of Ft10bn (US$37m) and EBITDA of Ft2.5bn in 2014. The alternative operator provides fixed voice, internet, data and IT services to about 7,000 business customers, fixed internet and telephony services to about 11,000 residential customers and also has a strong domestic and international wholesale operations, the telo said.
Deutsche Telekom acquired GTS Hungary as part of its €546m purchase of the GTS Central Europe group in 2014.