Deutsche Telekom and Tele2 have agreed to sell T-Mobile Netherlands to WP/AP Telecom Holdings IV B.V. for an enterprise value of 5.1 billion euros, equating to approximately 8.7x LTM adjusted EBITDA AL.
The transaction marks the completion of Deutsche Telekom’s strategic review of T-Mobile NL which was announced at the May 2021 Capital Markets Day and follows the 0.7 billion euros divesture of its Dutch mobile tower business earlier this year.

Deutsche Telekom will receive approximately 3.8 billion euros net cash proceeds from the transaction and deconsolidate T-Mobile NL, which generated 2,008 million euros of revenues and 582 million euros of adjusted EBITDA AL in the last twelve months as of June 30, 2021.

Since 2017, T-Mobile NL has significantly strengthened its mobile market share from 25 percent to 42 percent in 2020 (based on number of mobile SIMs), becoming the leading mobile operator in the Netherlands.

T-Mobile NL entered the fixed market with the acquisition of Thuis in 2016 and reinforced its market position by forming a strategic partnership with Open Dutch Fiber (owned by KKR and DTCP) in 2021.

T-Mobile NL serves around 700,000 broadband customers as end of second quarter of 2021.

T-Mobile NL’s operational improvements have translated into an outstanding growth profile, with a 15 percent adjusted EBITDA AL CAGR between 2018 and 2020. T-Mobile NL has a track record of value accretive M&A by acquiring Thuis in 2016, combining with Tele2 Netherlands in 2018 and acquiring the Dutch MVNO Simpel in 2020.

WP/AP Telecom Holdings IV B.V. is an entity jointly controlled by funds advised by Apax Partners and Warburg Pincus.

Apax and Warburg Pincus are also joint owners of Inmarsat. Other investments include: Orange Switzerland, Ziggo, TDC, Wind Telecom and Community Fibre.

Morgan Stanley acted as exclusive financial advisor to Deutsche Telekom on this transaction. De Brauw Blackstone Westbroek acted as legal advisor to Deutsche Telekom.