Advised freenet.de on its acquisition of Tiscali’s German broadband and narrowband customer relationships
Jan 2007
acquired
  • Sector: Communication Services
  • Deal Type: Strategic Deals; Public Deals
  • Engagement type: Buyside
  • Size: <$200m
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– Tiscali S.p.A (BIT: TIS) is a leading provider of Internet and VoIP access and telephone services to German consumers and businesses

– The company also provides Web hosting, Web development and marketing services

– Tiscali has c. 380,000 active customers in Germany, of which approximately one third are broadband customers

– As an Internet service provider, freenet.de AG (FRA: FNT) offers narrowband Internet access, as well as broadband access. The Company’s B2B segment offers a range of value-added services and develops communications solutions for business customers. Its services include Voice over Internet Protocol (VoIP), e-commerce and hosting

– Headquartered in Germany, freenet AG has nearly 4,000 employees and had revenues of €2,057m in FY2006

– This acquisition reinforced freenet’s position as one of the largest competitive internet access providers, particularly in DSL

– Tiscali’s large number of narrowband as well as broadband subscribers fitted well with freenet’s existing customer base

– Tiscali did not have the scale or critical mass to continue to compete in Germany, as intensive competition took hold of the market

– This acquisition is inline with Tiscali’s strategy of refocusing its operations and financial resources in markets with the highest potential for value creation, notably Italy and the UK

– Arma Partners worked closely with freenet throughout the transaction; from the identification of the opportunity, through to the closing, working through all the facets of what was a relatively complex transaction