Deutsche Telekom buys GTS Central Europe, further expands footprint in Romania

German telecom firm Deutsche Telekom will takeover Polish firm GTS Central Europe, which is also present in Romania. The deal, worth EUR 546 million, will allow Deutsche Telekom to expand on the telecommunication services market as well as offer integrated products in countries where Deutsche Telekom currently maintains limited fixed-line access network infrastructure. The sellers are several private capital funds, including Columbia Capital, HarbourVest Partners, Innova Capital and M/C Partners. "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. In 2012, GTS achieved revenues of EUR 347 million and EBITDA of EUR 87 million pro-forma excluding the Slovak assets, which will be retained by the sellers as part of the transaction. In Romania, GTS is one of the main suppliers of telecom services, and posted revenues of EUR 20 million last year, and an operational profit of EUR 5 million. Deutsche Telekom controls telecom providers Cosmote – mobile services, Romtelecom – fixed telecom services, and retailer Germanos through Greek OTE. editor@romania-insider.com