Deutsche Telekom acquires GTS Central Europe
11 November 2013 |
Deutsche Telekom revealed yesterday that it has acquired GTS Central Europe for €546 million.
The German firm will now be able to deliver integrated products and services to businesses in eastern Europe via GTS’s fixed-line, fibre-optic infrastructure.
An acquisition was rumoured in May this year, and Deutsche Telekom said in a statement that its success will strengthen the company’s position in the business-to-business segment.
“We are investing against the trend,” said Timotheus Höttges, CFO at Deutsche Telekom.
“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.”
Deutsche Telekom is acquiring the operator from a consortium of private equity firms, including Columbia Capital, HarbourVest Partners, Innova Capital and M/C Partners.
GTS has widespread network and data centre infrastructure across central and eastern Europe, and last year claimed to hold the shortest route between Russia and western Europe.
Danny Bottoms, CEO at 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.”
The transaction is still subject to regulatory approvals.
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