Türk Telekom expands its reach in Europe
Turkey’s incumbent telco buys into European wholesale market with acquisition of Invitel International
Türk Telekom, Turkey's incumbent telecom operator, has agreed to acquire Invitel International, a cable operator servicing central and south eastern Europe.
Türk Telekom is set to make the acquisition from Invitel Holdings for EUR221 million ($273.8 million), with a total cash consideration of about EUR197 million.
Invitel International is a provider of wholesale data and capacity services in central and south-eastern Europe. The company owns and operates a 27,000km optical fibre network and has a presence in 16 countries.
Paul Doany, CEO, Türk Telekom, told CommsMEA that the acquisition could allow the operator to become an important hub for data services, given Turkey's geographic position between Europe and the Middle East.
"We could potentially become a very important hub here, and not just for the carriage of data." He said that the acquisition could open up the opportunity to offer services such as cloud computing in the next few years.
"Istanbul can become a very important data centre and a hosting hub for these types of services," he said.
The acquisition will allow Türk Telekom to connect increasing data traffic within the central eastern European region, and from Turkey, Middle East and Asian markets to Western Europe and the USA.
The deal will also allow Invitel International and Türk Telekom to strengthen their relationship with their international data and broadband customers, the operator said in a statement.
Completion of the deal is subject to regulatory approval.