Deutsche Telekom has acquired the Warsaw based GTS Central Europe for €546 million to help boost cloud and IP network services.
The deal, which is still subject to regulatory approvals, will boost Deutsche Telekom's ability to provide pan-European cross-border telecommunication services for business customers. It will also help the operator to solidify its mobile-centric infrastructure in key European markets.
DT is acquiring GTS from a consortium of international private equity firms, including Columbia Capital, HarbourVest Partners, Innova Capital and M/C Partners.
The agreement does not include the company’s Slovakian assets, which will remain in the hands of the company’s private equity owners for now.
GTS is a provider of integrated telecommunications solutions and data centre services throughout Central and Eastern Europe. It owns and operates a fibre-optic and data centre network throughout the Czech Republic, Hungary, Poland, Romania and Slovakia.
The firm also provides voice and data services to virtual private networks and cloud services.
"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.
The operators’ revenue jumped six percent year-on-year to €15.5 billion in the latest Q3 figures. However, adjusted net profit was down 11.4 percent to €823 million.
Deutsche Telekom is present in around 50 countries; it has 140 million mobile customers, over 31 million fixed-network lines and more than 17 million broadband lines.