German cableco PrimaCom has agreed to acquire smaller rival DTK Deutsche Telekabel in a deal it contends is likely to trigger further consolidation.
Leipzig-based PrimaCom said the deal, subject to regulatory approval, will increase the number of…
German cableco PrimaCom has agreed to acquire smaller rival DTK Deutsche Telekabel in a deal it contends is likely to trigger further consolidation.
Leipzig-based PrimaCom said the deal, subject to regulatory approval, will increase the number of households it serves by 30% to about 1.3 million. Based in Frankfurt, DTK provides digital TV and radio, internet and telephone services to about 270,000 households.
The deal value was not disclosed.
In its statement, PrimaCom said the deal provides a counterweight to major operators such as Kabel Deutschland (KDG), acquired by UK-based Vodafone for €7.7bn last year, and Unitymedia KabelBW. KabelBW was bought by Liberty Global subsidiary Unitymedia for US$4.1bn in 2011 but, at the request of a German higher regional court, the deal is now subject to a reassessment by antitrust regulator, the Federal Cartel Office (FCO).
PrimaCom CEO Joachim Grendel said the deal opens up “great prospects” for further growth and development as a national operator with a regional focus.
DTK CEO Roland Stone noted that the two companies have similar business models, adding that he considers the takeover an ideal solution for expanding their customer bases and fibre-based network infrastructures.
PrimaCom, which acquired small operator Sy-Fra Antennentechnik last year, said it is well placed to foster further consolidation in the cable sector, adding that it has the financial firepower to participate in future acquisitions.
The German cable sector seems ripe for further consolidation, with operators actively pursuing deals.
Last November, PrimaCom rejected an unsolicited takeover offer from larger rival Tele Columbus, saying it envisages itself as a buyer rather than a seller in any in-market consolidation deal. The previous month, Primacom MD Wolf Waschkuhn said his company had made bids for Tele Columbus’ Berlin assets as well as for DTK.
