Kabel Deutschland takes over Tele Columbus
Jörn Krieger ©RapidTVNews | 21-05-2012
Germany's largest cable operator Kabel Deutschland has signed an acquisition deal with smaller market player Tele Columbus.
Still subject to final approval by the Federal German cartel office, Bundeskartellamt, the acquisition price will be €603 million in addition to the accumulated interest rate. On 31 December 2011, this would have resembled a total amount of €618 million. Through the transaction, Tele Columbus will be able to pay back all of its debts.
Tele Columbus serves 1.7 million households with TV, internet and telephony. The company is mainly present in Berlin and in the eastern German federal states including the cities Dresden, Magdeburg and Potsdam. In 2011, Tele Columbus achieved a turnover of €218 million and an EBITDA of €81 million.
Through the purchase, which has been the subject of speculation since March 2012, Kabel Deutschland will accomplish a consolidation of network levels. As a last mile operator (network level 4), Tele Columbus distributes the offerings provided by network level 3 player Kabel Deutschland in large parts of its networks through wholesale contracts.
With the take-over, Kabel Deutschland can lift the separation of network levels and directly supply Tele Columbus' former customers in future. This will enable the company to expand its service portfolio, for example in the areas of pay-TV, internet and telephony.