DT Acquires GTS Central Europe for $745M
T-Mobile USA's parent company, Deutsche Telekom (DT), has agreed to acquire GTS Central Europe ("GTS") for $745 million.
GTS is an infrastructure-based telecommunications service provider in Central and Eastern Europe, which DT says will allow it to offer pan-European telecommunication services, as well as integrated products in countries where it has limited network access.
Timotheus Höttges, CFO at Deutsche Telekom, said the acquistion is part of DT's strategy to invest "against the trend."
"GTS is a further element for developing our integrated market position comprising mobile and fixed-line network services," Höttges said in a statement. "Strengthening our position with business customers is also a core element of our strategy."
GTS offers network and data center infrastructure, as well as a portfolio of services focused on business customers. In 2012, GTS achieved revenues of $466 million and EBITDA of $116 million pro-forma excluding the Slovak assets, which will be retained by the sellers as part of the transaction.
The transaction is subject to regulatory approvals.