Deutsche Telekom received on April 15 the required merger control clearance from the European Commission for the acquisition of GTS Central Europe, the company announced in a press release.
The acquisition was announced in November 2013 and the transaction will close in the coming weeks. Deutsche Telekom acquired 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.
“We are pleased that we can now close the transaction and start the integration of GTS. It fits perfectly into our strategy of building a pan-European network and strengthens our position with business and multinational customers. Moreover, it will enable us to offer all of our wholesale customers competitive, high-quality services,” commented Claudia Nemat, board member for Europe and technology at Deutsche Telekom.
In 2013, GTS achieved revenues of EUR 337 million and EBITDA of EUR 88 million pro-forma excluding the Slovak assets, which will be retained by the sellers as part of the transaction.
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.
“This decision eases any concerns customers and employees may have had. We will of course keep them informed in the coming weeks about the next steps regarding the integration. We are absolutely certain this union will add value to everyone involved,” said Danny Bottoms, CEO of GTS.
Deutsche Telekom group has over 142 million mobile customers, 31 million fixed-network lines and more than 17 million broadband lines (as of December 31, 2013).
The Group provides fixed network, mobile communications, Internet and IPTV products and services for consumers and ICT solutions for business customers and corporate customers.
Deutsche Telekom is present in around 50 countries and has approximately 229,000 employees worldwide.
The Group generated revenues of EUR 60.1 billion in the 2013 financial year – more than half of it outside Germany.
In Romania, Deutsche Telekom is present through operators Romtelecom, Cosmote Romania and Germanos GSM dealer.