LONDON-Following weeks of industry speculation, Deutsche Telekom on Friday won its bid to buy U.K. mobile carrier One 2 One in a deal valued at about $13.6 billion.
The deal is made up of about $11.2 billion in cash and the assumption of about $2.4 billion in third-party debt. The transaction is expected to be completed by the end of September, said Cable &*Wireless.
Deutsche Telekom has publicly stated its desire to become a global player through acquisitions of mobile phone companies, Internet service providers and information systems groups.
The company failed in its bid earlier this year to acquire Italy’s Telecom Italia, but it later raised $11 billion in a secondary offering, fueling speculation the company was looking for acquisitions.
Deutsche Telekom also has been rumored to be interested in tie-ups with Sprint Corp. and Qwest Communications International Inc.
One 2 One’s parents, Cable & Wireless plc and MediaOne Group Inc., put One 2 One up for sale in March.
Graham Wallace, chief executive officer of Cable & Wireless, said the sale of One 2 One will allow the company to focus on providing data and Internet Protocol services to business customers, simplifying its corporate structure and strengthening its financial position.
Gary Ames, president and CEO of MediaOne International, said the deal represents an excellent return on its $484 million investment in One 2 One.
One 2 One has about 2.65 million subscribers.
