T-Mobile Netherlands, part of the Deutsche Telekom group, is divesting its broadband unit Euronet/Online to the Benelux-based CDS Group (M7 Group), the parent of Dutch pay-TV and triple-play provider CanalDigitaal, a press release from T-Mobile stated. Under the plan, Euronet Communications – the holding company for T-Mobile’s triple-play fixed network activities, which operate under the brand names Online.nl (consumer and small enterprise) and Euronet Internet (business) – will initially remain an independent operation alongside CanalDigitaal’s existing TV and resold telephony/internet packages. The Online.nl consumer arm offers fixed telephone, broadband access and IPTV packages, partly over its own infrastructure. No financial details have been disclosed for the deal, which is expected to complete in early 2014, subject to approval by the company’s workers council and the Dutch telecom and consumer authority ACM.
Roderik Schlosser of CDS Group explained: ‘The purchase of Euronet enables our wired internet and telephony in the Netherlands to further strengthen.’ Managing director of T-Mobile Netherlands Thomas Berlemann said of his company’s motivation to sell the unit: ‘Our strategy is to become the leader in mobile internet. The sale of Euronet to CDS Group ensures that we can focus even more to achieve this goal.’
CDS Group (registered as CDS Cooperatieve UA in the Netherlands) is owned by US private equity group Providence and Netherlands-based investment fund Airbridge, and is itself the 100% shareholder of Luxembourg-based M7 Group, which has a satellite (DTH) pay-TV operating presence in the Netherlands (CanalDigitaal), Belgium (Flanders-based ‘TV Vlaanderen’ – the group’s other triple-play unit – and ‘TeleSAT’ in French-speaking Belgium), Austria (‘AustriaSat’), Czech Republic (‘CS Link’) and Slovakia (‘Skylink’). CDS Holdco II BV is the group’s local holding unit in the Netherlands which is purchasing Euronet.