Deutsche Telekom to Acquire GTS Central Europe for $730m - Bloomberg

Deutsche Telekom to Acquire GTS Central Europe for $730m - Bloomberg:

"Deutsche Telekom AG (DTE) agreed to buy GTS Central Europe for 546 million euros ($730 million), adding landline networks in countries where the German phone company’s services are predominantly wireless.
Deutsche Telekom is acquiring Warsaw-based GTS from private-equity firms including Columbia Capital, HarbourVest Partners, Innova Capital and M/C Partners, the Bonn-based company said yesterday. The transaction, subject to regulatory approvals, will give Deutsche Telekom landline grids in Poland, the Czech Republic, Hungary and Romania.
The price of the purchase, which values GTS at 6.3 times earnings before interest, taxes, depreciation and amortization, “is not a bargain but still an acceptable price,” said Heike Pauls, an analyst at Commerzbank AG in Frankfurt, who has a hold rating on Deutsche Telekom shares. That compares with an industry valuation of six times Ebitda, she said."

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