Cable Takeover

Tele Columbus Buys Rival Pepcom

TVs  W.M.WeberTV-yesterday
Tele Columbus is expanding its grip on the German cable TV market.
  • Why it matters

    Why it matters

    The continued expansion of cable operator Tele Columbus could hit the profitability of  Vodafone-owned Kabel Deutschland, Liberty Global’s Unitymedia and Deutsche Telekom.

  • Facts

    Facts

    • Tele Columbus and pepcom provide cable TV, internet and phone services and jointly have about 3.7 million connected homes.
    • Tele Columbus, which listed on the Frankfurt Exchange in January, will fund the takeover by cash and a planned €240-million capital hike.
    • Unitymedia has more than 7.1 million customers in Germany and Kabel Deutschland 8.3 million.
  • Audio

    Audio

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Tele Columbus, Germany’s third-largest cable TV operator, is on a buying spree.

The Berlin-based firm on Sunday said it will buy smaller rival cable operator Pepcom for €608 million, or $689 million, marking the second major acquisition in two months.

Tele Columbus, which agreed to buy rival Primacom in July for €711 million, will increase its number of customers by about 0.6 million to 3.7 million connected homes, the firm said in a statement.

“The company has operations nationwide with a strong presence in economically-attractive cities such as Munich, Nuremberg, Leipzig and Frankfurt,” Tele Columbus said about Pepcom.

Even including the takeover of Primacom and Pepcom, Tele Columbus would have recorded sales of €471 million in 2014. That’s still a far cry from the €2.05 billion realized by Germany’s market leader Unitymedia, which is owned by Nasdaq-listed U.S. firm Liberty Global, and the €2.02 billion of Kabel Deutschland, which is owned by British mobile phone operator Vodafone.

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