Feeds

Freenet to buy debitel for $2.54bn

Redraws German mobile map

Eight steps to building an HP BladeSystem

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. ®

Securing Web Applications Made Simple and Scalable

More from The Register

next story
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Apple orders huge MOUNTAIN of 80 MILLION 'Air' iPhone 6s
Bigger, harder trouser bulges foretold for fanbois
Bring back error correction, say Danish 'net boffins
We don't need no steenkin' TCP/IP retransmission and the congestion it causes
GoTenna: How does this 'magic' work?
An ideal product if you believe the Earth is flat
Telstra to KILL 2G network by end of 2016
GSM now stands for Grave-Seeking-Mobile network
Seeking LTE expert to insert small cells into BT customers' places
Is this the first step to a FON-a-like 4G network?
Yorkshire cops fail to grasp principle behind BT Fon Wi-Fi network
'Prevent people that are passing by to hook up to your network', pleads plod
BlackBerry: Toss the server, mate... BES is in the CLOUD now
BlackBerry Enterprise Services takes aim at SMEs - but there's a catch
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.