Telefonica acquires HanseNet for EUR900m

6 Nov 2009

Telefonica has announced it has signed an agreement with Telecom Italia (TI) to buy the company’s German broadband unit HanseNet for EUR900 million (USD1.34 billion) in an all cash transaction. After the acquisition is finalised, the Spanish company’s German operations, Telefonica O2 Germany, will add HanseNet’s DSL customers, which currently stand at around 2.2 million. According to the Spanish group, this will make Telefonica O2 Germany the third largest player in the market in terms of revenue, generating potential annual turnover of almost EUR5 billion, with 15 million mobile and 2.4 million DSL customers. The transaction is subject to the signature of the definitive agreements and the approval from the relevant competition authorities and is expected to be completed during the first quarter of 2010. ‘As one of the leading DSL providers in Germany HanseNet is a perfect match for O2,’ said Matthew Key, chairman and CEO of Telefonica Europe, adding, ‘The arrival of HanseNet to the Telefonica family would be a huge step forward as an European integrated telecommunication provider. This agreement underlines our clear commitment to the German market.’