Kabel Deutschland Holding AG has confirmed it will acquire Tele Columbus for €603 million plus accrued interest. The purchase price will provide for repayment in full of the financial debt of Tele Columbus.
Tele Columbus, headquartered in Berlin, provides basic cable services to approximately 1.7 million customers in 2.1 million homes connected and is Germany’s largest network level 4 cable operator. The company operates predominantly in Berlin and in Eastern Germany including the cities of Dresden, Magdeburg and Potsdam. The business of Tele Columbus overlaps to a large extent with Kabel Deutschland’s footprint. In the fiscal year 2011 Tele Columbus reported revenues of €218 million and an operating result (EBITDA) of €81 million.
The transaction resolves to a large extent the separation of cable network levels as is already the case in the footprints of Unitymedia in North Rhine-Westfalia and Hesse and of Kabel BW in Baden-Wuerttemberg. Following a successful closing of the acquisition, most of Tele Columbus’ customers will be able for the first time to subscribe to Kabel Deutschland’s high speed internet products and new TV services. Therefore, the transaction will strengthen the existing broadband infrastructure competition in Germany.
The acquisition is subject to the approval of the German Federal Cartel Office.
