To strengthen its position in German market
Telefonica and Telecom Italia have signed an agreement for the acquisition of Hansenet for a firm value of €900m in an all cash transaction, in a bid to strengthen its position in the German market.
Once the acquisition of the DSL-provider is finalised, Telefonica O2 Germany is expected to become the number three player in the German market in terms of revenue. Combining both the companies’ annual revenues will amount to almost €5 billion.
Telefonica O2 Germany will add Hansenet’s DSL customers into its fold and will also strengthen its capability to serve bundle-offers of mobile and fixed net products. The acquisition is expected to create an integrated telecommunication provider with 15m mobile and 2.4m DSL customers in Germany.
Matthew Key, chairman and CEO of Telefonica Europe, said: “As one of the leading DSL-providers in Germany Hansenet is a perfect match for O2. Both companies are defined by a challenger spirit and have proven success stories in their fields. The arrival of Hansenet to the Telefónica family would be a huge step forward as an European integrated telecommunication provider. This agreement underlines our clear commitment to the German market.”
The transaction is subject to the signature of the definitive agreements and the approval from the relevant competition authorities and is expected to be finalised during the first quarter of 2010.