DT agrees deal to buy GTS Central Europe for USD730m

11 Nov 2013

Deutsche Telekom (DT) has struck a deal to purchase Warsaw-based altnet GTS Central Europe for EUR546 million (USD730 million), adding fixed line networks in several eastern European countries where DT’s operations are primarily based on wireless services. The German giant is acquiring GTS CE from a number of private equity groups such as Columbia Capital, HarbourVest Partners, Innova Capital and M/C Partners. If approved – the deal is subject to regulatory approval in each target country – DT will bolster its assets with the addition of PSTN infrastructure in Poland, the Czech Republic, Hungary and Romania, giving it the opportunity to revive its businesses in the eastern Europe region.

Founded in 1993, GTS CE specialises in delivering enterprise and wholesale telecoms services in central and eastern Europe. It reported revenues of EUR347 million and EBITDA of EUR87 million in FY 2012, excluding the group’s Slovak assets, which will be retained by the sellers. It is understood that Level 3 Communications had also bid for GTS. In September this year it was reported that the planned sale of GTS had been shelved due to a lack of interest from potential buyers. At the time, DT, Netia of Poland and Turk Telecom were all reportedly considering entering bids.

Czech Republic, Germany, Hungary, Poland, Romania, Deutsche Telekom (DT), GTS Czech (part of T-Mobile CR), GTS Hungary (part of Magyar Telekom), GTS Telecom (Romania)