Optical components

Turk Takes Invitel

Türk Telekomunikasyon A.S. confirmed today that it will buy 100 percent of Central and South European wholesale and data services provider Invitel Zrt. for around €197 million in cash in a bid to capitalize on its position as a gateway between Europe and Asia.

The move means that Hungary’s largest fixed-line alternative provider, Invitel Holdings, which was acquired from Danish operator TDC by private equity firm Mid Europa Capital last year, will divest its international wholesale business in order to focus on its retail business in Hungary.

According to a recent report from IHS Global Insight, the acquisition would make Türk Telekom a leading wholesale provider for carriers operating in Central, Eastern, and Southeast Europe.

The Turkish incumbent operator said in a statement that it will gain a 27,000-kilometer fiber network through the acquisition. Invitel International, which has a total enterprise value of €221 million, provides wholesale and data services in 16 countries. Türk Telekom will also acquire Invitel International subsidiaries AT-Invitel GmbH, Invitel International Hungary Kft, and S.C. EuroWeb Romania SA.

Türk Telekom said the acquisition will allow it “to capitalize on its unique geographic ‘hub’ location” by connecting data and broadband traffic within the Central Eastern European region, and from Turkey, Middle East, and Asian markets to Western Europe and the United States. The deal is still subject to regulatory approval.

— Anne Morris, Special to Light Reading

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