Feeds

Freenet to buy debitel for $2.54bn

Redraws German mobile map

Internet Security Threat Report 2014

Hamburg-based internet access provider Freenet has agreed to buy telecom reseller debitel AG for €1.63bn ($2.54bn).

With over 19 million customers the combined company will become the third largest mobile player on the German market, behind T-Mobile and Vodafone but outstripping E-Plus and O2.

The companies had combined 2007 sales of €5.23bn and earnings before interest, taxes, depreciation and amortisation of €508m.

Freenet's supervisory board approved the transaction this weekend, despite opposition from shareholder United Internet.

United Internet, which holds 25 per cent in Freenet with mobile phone company Drillisch, wanted to purchase all of Freenet and then split up the internet access business and the mobile telecoms business. However, Freenet was no longer interested in its own DSL business and wanted to concentrate on mobile telephony. The sale of its broadband and fixed-line segment is expected soon.

Debitel's present owner Permira will receive 32 million shares in Freenet, which itself was formed from a merger of mobilcom and Freenet just over a year ago. The transaction is still subject to anti-trust approval by the German cartel office.

On a cash-free basis, the debitel Group will be acquired with financial liabilities in the amount of €1.135bn.

Debitel also offers services in France, Denmark and in the Netherlands. In the Netherlands debitel recently announced it would have to close 60 of its shops and concentrate on internet sales. ®

Business security measures using SSL

More from The Register

next story
Brit telcos warn Scots that voting Yes could lead to HEFTY bills
BT and Co: Independence vote likely to mean 'increased costs'
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
New 'Cosmos' browser surfs the net by TXT alone
No data plan? No WiFi? No worries ... except sluggish download speed
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Blockbuster book lays out the first 20 years of the Smartphone Wars
Symbian's David Wood bares all. Not for the faint hearted
Bonking with Apple has POUNDED mobe operators' wallets
... into submission. Weve squeals, ditches payment plans
This flashlight app requires: Your contacts list, identity, access to your camera...
Who us, dodgy? Vast majority of mobile apps fail privacy test
Apple Watch will CONQUER smartwatch world – analysts
After Applelocalypse, other wristputers will get stuck in
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.