PrimaCom is being put up for sale, according to people familiar with the situation, reports Bloomberg.
Investment bank Jefferies Group has been hired to prepare the search for a buyer, said the people, who declined to be identified because talks are private. Initial information may be sent to potential bidders next month, one person said.
PrimaCom, based in Leipzig, offers triple play services to more than 1 million households, mostly in eastern Germany.
The news comes as consolidation in the German cable market is finally starting to happen with TeleColumbus also on the market. Both cable and telecom operators are interested in snapping up these small to medium sized operators.
During the past few weeks, Liberty Global (who owns Unitymedia and Kabel BW), Kabel Deutschland and Deutsche Telekom have expressed interest in extending their footprint.
There are still dozens and dozens of small to medium sized private operators scattered across the country and these are the ones that usually have the relation with the actual customers (level 4).
Buying up these small operations would make sense for the incumbent cablers as in many cases they just have the level 3 infrastructure. For Telekom this would also make sense, as they have now started again their ‘traditional’ TV business, operating as a wholesaler of the TV product.