Swedish telecoms giant Tele2 has announced that its Austrian unit has acquired Vienna-based corporate internet service provider (ISP) Silver Server, in a transaction valued at SEK110 million (USD16.0 million). Tele2 reports that Silver Server earned net revenues of SEK100 million in 2010, with EBITDA reported at SEK20 million. Whilst the deal requires approval from the Austrian Competition Authority (ACA), no regulatory red-tape is anticipated.
According to TeleGeography’s GlobalComms Database, Tele2 Austria claims to be the country’s largest indirect provider of consumer and corporate telecoms, providing fixed line services to business and residential customers over its own 15,500km fibre-optic network. However, while its broadband competitors have invested heavily in the upgrade and expansion of their infrastructure, in recent years Tele2 has been comparatively non-committal over its Austrian operations, even putting the telco up for sale in 2008, only to call off the sale the following August due to a lack of interest.