Acquired companies maintain cable and house networks
Teleste, a Finland-based broadband data communication systems provider, has acquired three German cable network companies – MKS, Young-Net and Antel – to develop network services locally and provide a comprehensive product range to its clientele.
Initially, Teleste will pay E8.7 million in cash for the acquisitions. Any increase in the price, depending on the net profits of the acquired companies in the next two years, will be paid partly through Teleste’s shares.
The Teleste group runs two business units, broadband cable networks and video networks. It has 30 offices worldwide. In 2007 the group’s net sales totalled E125.1 million, with 91% coming from businesses outside Finland.
The three acquired companies specialise in upgrading and maintenance of cable and house networks. They provide services directly to cable operators and through their affiliate company Cableway. MKS, and Young-Net operate in North Rhine-Westphalia, Lower Saxony and Rhineland-Palatinate in the Western and Central Germany, whereas Antel operates in the Southern region of Bavaria.
The acquisition raises Teleste’s share in Cableway to more than 50%. Teleste is one of the eight partners of Cableway, which was founded in February 2008. In May 2008, Teleste and Cableway jointly started offering in-house network upgrades as turn-key services in Germany.
Teleste estimates its net sales for 2009 to be E30 million, with the acquisition of the three companies having a positive impact on its profitability.