Deutsche Telekom has acquired GTS Central Europe (GTS) from a consortium of international private equity firms, including Columbia Capital, HarbourVest Partners, Innova Capital and M/C Partners, for a total fee of €546 million.
GTS is one of the top infrastructure-based telecommunications service providers in the CEE region.
The company has extensive network and data center infrastructure, as well as a strong portfolio of services focused on business customers.
In 2012, GTS had revenues of €347 million and EBITDA of €87 million pro-forma excluding its Slovak assets, which will be retained by the sellers as part of the transaction.
GTS has a presence in the Czech Republic, Hungary, Poland, Romania and Slovakia. It combines its regional footprint with deep local networks to deliver a broad range of services to over 38,000 business, carrier and government customers.
Commenting on the deal, which is subject to regulatory approval, Timotheus Höttges, CFO at Deutsche Telekom, said: “We are investing against the trend. GTS is a further element for developing our integrated market position comprising mobile and fixed-line network services. Strengthening our position with business customers is also a core element of our strategy.”
Claudia Nemat, board member for Europe and Technology at Deutsche Telekom, added: “This acquisition enhances our ability to provide innovative pan-European cross-border telecommunications services. Our existing mobile-centric national companies in the Czech Republic and Poland will benefit most from the added fixed-line infrastructure. Therefore, GTS is an ideal addition to our portfolio.”
Danny Bottoms, CEO of GTS, said: “We see Deutsche Telekom as the best partner for GTS and are excited about the benefits and opportunities this will create for our customers and employees.”
