Deutsche Telekom is acquiring GTS from a consortium of international private equity firms, including Columbia Capital, HarbourVest Partners, Innova Capital and M/C Partners, who have actively developed the company over the last six years.
With GTS, Deutsche Telekom is enhancing its ability to offer pan-European telecommunication services as well as integrated products in countries where Deutsche Telekom currently maintains limited fixed-line access network infrastructure, Deutsche Telekom said in a statement.
“We are investing against the trend. GTS is a further element for developing our integrated market position comprising mobile and fixed-line network services. Strengthening our position with business customers is also a core element of our strategy,” said Timotheus Höttges, Chief Financial Officer at Deutsche Telekom.
“This acquisition enhances our ability to provide innovative pan-European cross-border telecommunications services. Our existing mobile-centric national companies in the Czech Republic and Poland will benefit most from the added fixed-line infrastructure. Therefore, GTS is an ideal addition to our portfolio,” commented Claudia Nemat, Board member for Europe and Technology at Deutsche Telekom.
GTS is one of the top infrastructure-based telecommunications service providers in Central and Eastern Europe. The company has extensive network and data center infrastructure, as well as a strong portfolio of services focused on business customers. In 2012, GTS achieved revenues of EUR347 million and EBITDA of EUR87 million pro-forma excluding the Slovak assets, which will be retained by the sellers as part of the transaction.
GTS Telecom is one of the main alternative telecom services providers in Romania, offering national and international data, voice, internet, and cloud services. The company is headquartered in capital city Bucharest and employs some 130 people.
In 2012, GTS Telecom Romania reported revenues of EUR20 million, down 15% from 2011, and an operating profit (EBITDA) of EUR5 million, up 10% on the year.
Deutsche Telekom controls Greek group OTE, which operates in Romania telecom operator Romtelecom and the local division of mobile telecom operator Cosmote.