German cable operator Tele Columbus has struck a deal with Vodafone Kabel Deutschland to acquire the latter’s stake in Kabel TV Munich Servicenter (KMS).
Under the deal, Tele Columbus subsidiary Pepcom, which was previously the majority owner of the outfit, will take 100% control of KMS, which supplied 455,000 homes in southern Germany with TV, internet and phone services, with a focus in the Munich area. The outfit provides services via housing association networks and to private customers.
Tele Columbus, which now operates under the PŸUR brand, will pay €40 million on conclusion of the contract and a further €12 million in the first quarter of next year, giving a purchase price of 5.22 times EBITDA.
As part of the deal, Tele Columbus will transfer about 15,000 homes that could not easily be connected to its own two-way network to Vodafone.
“The acquisition of the outstanding KMS shares of Vodafone Kabel Deutschland creates clear shareholdings and makes it easier to continue to drive our business with our high-performance telecommunications products in the metropolitan region of Munich,” said Frank Posnanski, chief financial officer of Tele Columbus AG.
“In addition, this will accelerate the operational integration into the Tele Columbus Group and the introduction of our attractive PŸUR product world.”