Tele Columbus Group, Germany’s third largest cable network operator, has announced that it has finalised the acquisition of Leipzig-based PrimaCom, the country’s fourth largest cableco. In a press release, Tele Columbus highlighted that the takeover of PrimaCom has been financed through a combination of cash on balance sheet, a fully underwritten financing comprising EUR935 million (USD1.15 billion) amended and incremental senior credit facilities, EUR140 million of junior tranche and a EUR125 million equity bridge loan. Tele Columbus added that it will now start the integration process in order to merge the operations and infrastructure of both companies, with PrimaCom assets to be fully consolidated from 1 August 2015. The transaction did not require regulatory approval and was not subject to merger control review.
As previously reported by CommsUpdate, in July 2015 Tele Columbus entered into an agreement to acquire PrimaCom for a total consideration of EUR711 million on a cash and debt free basis. Tele Columbus stated that the combination of the two firms will lead to a ‘strong number three player’ in the German cable market, bringing together 2.8 million connected homes and two well-established housing association customer portfolios on one platform. The combined company will have an enhanced focus on Tele Columbus’ core Eastern German regions, as well as key Western regions such as Baden-Wuerttemberg, Hamburg, Hesse and North Rhine-Westphalia.