PRINT THIS PAGE Apax and Tele2 planning Dutch telecom firm Versatel acquisition for €1.3bn18/07/2005. Source: AltAssets. 
 Global private equity firm Apax Partners and Swedish alternative telecom operator Tele2 are planning to buy Dutch telecommunications provider Versatel. Their €2.20-a-share in cash offer values Versatel at €1.3bn.
As part of the agreement, Apax will acquire Versatel's German operations for an anticipated consideration of €565m on an enterprise value basis. Apax plans to continue the broadband penetration in the region covered by Versatel Germany, focusing on both business and residential customers.
The Supervisory Board and the Management Board of Versatel said in a statement that, 'after giving due consideration to the strategic, financial and social aspects of the proposed transactions, (we) unanimously support the intended offers and conclude that the offers are in the best interest of the customers, employees, shareholders, noteholders and all other stakeholders of Versatel and recommend that shareholders and noteholders accept the intended offers when made.'
In recent years, Versatel has focused on expanding its business in its three core markets, the Netherlands, Belgium and Germany. With regards to Versatel Benelux, Tele2 has announced that, upon completion of the offers, it will seek to integrate its existing operations with Versatel's Dutch and Belgian operations.
Lars-Johan Jarnheimer, CEO of Tele2, said, 'I am excited by the opportunity this acquisition gives us. The combination of our existing business and that of Versatel in the Benelux region will enable us to continue to provide our customers with the best prices along with improved product offers. As I have said before, when we reach a certain scale and when it becomes cost justifiable, then we will consider backward integration. The Benelux region is an excellent example of such a case and this acquisition immeasurably strengthens our position in this market.'
Torsten Krumm, partner of Apax, said, 'We are delighted to take part in the consolidation of the alternative telecom market in Germany and to have the opportunity to assist Versatel Germany further develop its growth strategy as an alternative player in the German market.'
Apax Partners operates across Europe, Israel and the United States. The firm pursues a balanced equity portfolio strategy, investing in late venture, growth capital and buy-outs. Some of Apax Partners' funds recent technology and telecommunications investments include Corvil, Dialog Semiconductor, Fractus, Kabel Deutschland, Inmarsat, Red-M, Systemonic, Preventsys, Sonim Technologies and Wisair.
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