Also in today's EMEA regional roundup: Telefónica slows revenue decline; Deutsche Telekom launches investment mega-fund; ETNO plants a flag.
UK-based Colt Technology Services Group Ltd has agreed to buy KVH for €130.3 million (US$162.5 million). The deal will provide Colt with a platform to enter the Asia-Pacific market, as KVH currently operates data centers in Tokyo, Singapore, Hong Kong and Seoul. Colt and KVH are actually owned by the same company, Fidelity Investments, so in effect this is a combination of related companies. KVH claims around 2,000 enterprise and wholesale customers.
Spain's recovering economy helped Telefónica SA (NYSE: TEF) slow its pace of revenue decline, reports Bloomberg, with sales down 6.6% in the third quarter, compared with a 9.1% decline in the first half of the year. Organic revenues in the third quarter reached €13.02 billion ($16.24 billion), up 2.8% year-on-year. Shares in Telefónica rose 0.5% in early Madrid trading.
Acquisitions ahoy! Deutsche Telekom AG (NYSE: DT) has set up what it describes as one of the largest investment funds in Europe, in a new entity called Deutsche Telekom Capital Partners (DTCP). The carrier plans for DTCP to have a fund volume of €500 million ($623 million) over a five-year period, on top of its existing investments made through T-Venture .
Speculation that private equity firms Apax Partners and Bain Capital may provide some competition for Altice in its bid to acquire the Portuguese assets of Brazil's Oi has turned out to be on the money: The two firms have made a joint bid of €7.07 billion ($8.8 billion), the Wall Street Journal reports. (See Eurobites: Altice Bids $8.8B for Portugal Telecom.)
The European Telecommunications Network Operators' Association (ETNO) has been making its position clearer on the European Commission's proposals for a single telecom market, which were largely pushed by Neelie Kroes, who has now vacated her telecom berth. In a detailed statement, ETNO called for a "substantial deregulation of fixed-line wholesale access," the removal or revision of "proposals that have a negative impact on the investment capacity of the sector," the development of a "sound spectrum policy that accelerates the build-out of mobile network," a "level playing field across the Internet value chain" and the adoption of "rules on the open Internet that support service differentiation and quality." ETNO wants all these points to be incorporated in the draft regulation that is currently going through the Commission.
Russia's VimpelCom Ltd. (NYSE: VIP) has been feeling the impact of economic instability in the region that is largely the result of the ongoing conflict between Russia and Ukraine. As Bloomberg reports, third-quarter earnings fell 11% year-on-year to $2.21 billion on revenues down 9.5% to $5.15 billion.
Virgin Media Inc. (Nasdaq: VMED) is expanding its fiber network in Glasgow, promising to reach an additional 5,000 homes with its (up to) 152Mbit/s service.
— Paul Rainford, Assistant Editor, Europe, Light Reading