Investment group Providence Equity has acquired 100% of German cableco Kabel Deutschland (KDG) by buying out fellow shareholders Apax Partners and Goldman Sachs for EUR500 million, in a deal that valued KDG at EUR3.2 billion (USD3.8 billion). The buyout is the third major deal that Providence has struck in the last week. On Monday it agreed to buy Sweden’s Com Hem for EUR1 billion, in partnership with Carlyle, and is part of the Nordic Telephone Company consortium awaiting final acceptance of a EUR10.2 billion bid for Danish telecoms group TDC. If all the deals are approved, Providence will own cable operations in five European countries – Spain, Germany, the Netherlands, Sweden and Denmark.
German cable market leader KDG serves 13 federal states and around ten million households, of which three million are direct subscribers. It has been piloting a cable telephony service in Leipzig since April 2005, and by the start of 2006 expects to offer the service to all households that have access to its cable broadband internet service. By that date it aims to have made triple-play services available in fifteen cities.