Deutsche Telekom’s enterprise arm has acquired Hungarian company ITgen as it looks to boost its offering to businesses in the central European country.
T-Systems Hungary will pay up to HUF1.2 billion (€3.85 million) for ITgen, with the total figure dependent on the financial performance of the business over the next three years.
The SAP technology and security specialist posted revenues of HUF800 million (€96 million) in 2016 and EBITDA of HUF300 million (€2.5 million).
T-Systems said it hoped to complete the deal before the end of the year.
In a statement, the operator said: “The acquisition of ITgen allows T-Systems to provide more comprehensive and therefore more competitive SAP services through acquiring competencies that are highly complementary to its existing portfolio.
“ITgen possesses unique competencies in SAP technology consulting, SAP GRC and SAP security.”
Hungary has been one of the best performing of Deutsche Telekom’s opcos in Europe this year.
Total revenues jumped 8.6 percent to €1.3 billion in the first nine months of the year, with EBITDA up a more modest 0.7 percent to €418 million.
The business division is growing at a faster rate than the retail arm with sales up 14.1 percent to €470 million and 7.1 percent to €750 million respectively.
The company cited “clear revenue growth in the B2B/ICT business customer operations” in its most recent financial report.