Deutsche Telekom acquires GTS for EUR 546 mln

Deutsche Telekom acquired GTS Central Europe (GTS), an infrastructure-based telecommunications service provider in Central and Eastern Europe, for a total consideration of EUR 546 million. With GTS, Deutsche Telekom is enhancing its ability to offer pan-European telecommunication services as well as integrated products in countries where the German operator has limited fixed-line access network infrastructure.

GTS has extensive network and data centre infrastructure, as well as a portfolio of services focused on business customers. In 2012, GTS achieved revenues of EUR 347 million and EBITDA of EUR 87 million excluding its Slovak assets, which will be retained by the sellers as part of the transaction.

Deutsche Telekom is acquiring GTS from a consortium of international private equity firms, including Columbia Capital, HarbourVest Partners, Innova Capital and M/C Partners, which have actively developed the company over the last six years. GTS’ existing and prospective customers will benefit from the backing by Deutsche Telekom, including its extensive European and global network, access to fixed and mobile services and its financial resources. Complete business continuity for all customers will be ensured. The transaction is subject to regulatory approvals.