Deutsche Telekom acquires GTS Central Europe, with operations in Romania

Deutsche Telekom is strengthening its position in the business-to-business segment by acquiring GTS Central Europe, for a total consideration of EUR 546 million, announced the German telecom company in a press release. The transaction is subject to regulatory approvals.

“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,” commented Claudia Nemat, board member for Europe and Technology at Deutsche Telekom.

Deutsche Telekom is acquiring GTS from a consortium of international private equity firms, including Columbia Capital, HarbourVest Partners, Innova Capital and M/C Partners, who have actively developed the company over the last six years, according to the press release.

GTS is one of the top infrastructure-based telecommunications service providers in Central and Eastern Europe, with operations in Romania as well.

In 2012, GTS achieved revenues of EUR 347 million and EBITDA of EUR 87 million pro-forma, excluding the Slovak assets, which will be retained by the sellers as part of the transaction.

Read more about

Bucharest startup scene maintains positive outlook as economy grows

read more

In Romania, GTS Telecom, part of GTS Central Europe, announced revenues of EUR 20 million in 2012. Earnings before taxes, interest, depreciation and amortization (EBITDA) amounted to EUR 5 million, up 10 percent versus 2011.

Otilia Haraga