The deal brings together Germany’s third and fourth largest cable operators, creating a major force in biz
Tele Columbus CEO Ronny Verhelst (left) and CFO Frank Posnanski
Kicking off a new consolidation round in Germany’s cable market, Tele Columbus, the third largest German cable operator, has entered into an agreement to acquire Primacom, the fourth largest market player, for $787 million.
The combination of both companies will lead to a strong third force in the German cable market after Kabel Deutschland and Unitymedia serving a total of 2.8 million households. The transaction is expected to be closed on July 31, 2015.
“This is a transformational transaction for Tele Columbus, strengthening our position as the number three player in the German cable market,” Ronny Verhelst, CEO of Tele Columbus, said in Berlin. “Strategically and economically, this is a highly logical combination with significant network overlap between the two businesses and complimentary housing association custom
er bases. Primacom has shown impressive financial and operational performance over recent years and we look forward to further successes going forward.”
Joachim Grendel, CEO of Primacom, added: “Combining Tele Columbus and Primacom will build an excellent basis for the future competition with the global media and telecommunications corporates. This merger will be to the benefit not only of consumers and our partners in the housing industry, but also of Germany as a media and high-tech country.”
PrimaCom currently serves around 1.2 million households. In 2014, the company acquired cable operator Deutsche Telekabel and generated total revenues of $146 million and adjusted EBITDA of $61 million, resulting in a margin of 42 per cent. Primacom currently employs around 450 people with corporate headquarters in Leipzig.