Telecom service provider Deutsche Telekom has acquired GTS Central Europe for $729 million.
The acquisition of a fiber optic fixed-line and infrastructure business in Eastern Europe with network and data center infrastructure will assist Deutsche Telekom to strengthen its focus on serving enterprise customers.
Earlier, T-Systems, a division of Deutsche Telekom to focus on corporate customers, said it managed to substantially increase its profits in the third quarter. Its adjusted EBITDA increased 11.2 percent year-on-year to EUR 179 million. The adjusted EBIT margin achieved 3.8 percent after 1.5 percent in the third quarter of the prior year.
Deutsche Telekom said it is acquiring GTS from a consortium of international private equity firms, including Columbia Capital, HarbourVest Partners, Innova Capital and M/C Partners.
GTS, which owns and operates a fiber optic and data center network throughout the Czech Republic, Hungary, Poland, Romania and Slovakia, provides voice and data services to virtual private networks and cloud services.
Deutsche Telekom said the Slovak assets will be retained by the current owners. The remaining parts of GTS Europe which it is acquiring had revenues of 347 million euros and earnings before interest tax depreciation and amortization of 87 million euros in 2012.
Pix source: bloomberg