Hailing the buy as a major step in its European IP and Internet strategy, UK
telco Energis Thursday bought Dutch
operator EnerTel for £352 million (US$571 million) in cash and stock.
EnerTel is a network operator catering to 120 corporations and 55 ISPs in
the
Netherlands, and reported earnings of £28 million (US$45 million) last
year. The company offers voice, data and Internet services and its network
has full ATM and IP capability.
Energis will also gain 70 percent control of EnerTel’s holding company
WorldPort Europe Holding B.V., together with two switches in New York and
London. Energis will also gain the switches EnerTel holds in Rotterdam and
Amsterdam.
Energis has acquired broadband capacity from WorldPort in return for
assuming £9.0 million (US$14 million) in debt. This section of the deal
is expected to be approved in the next two months.
“[The acquisition] will make us the leading alternative telecom operator in
Holland, one of the most dynamic markets and a European hub,” said Mike
Grabiner, Energis’ chief executive. Grabiner added that the deal expands the
area in which Energis can now offer business-oriented data, IP and Internet
services.
Energis also expects the purchase to leverage its August acquisition of UCS, which marked its entry into continental Europe. UCS offers basic connectivity services in 11 European countries, and Energis now intends to widen its network through new builds, ISP acquisitions, or other Internet-focused telcos.
