euNetworks, a subsidiary of euNetworks Group, has signed a definitive agreement to acquire German-based LambdaNet Communications, a 100% subsidiary of 3U HOLDING.
euNetworks will pay €25m in cash (subject to adjustment) plus a payment of principal of €2m on an existing intercompany loan as well as an assumption of certain financial guarantees.
LambdaNet will retain the balance of the intercompany loan payable to 3U HOLDING of €7.8m. Additionally, LambdaNet is expected to have long term capital leases of €10m at closing.
The company said, through this acquisition, euNetworks will strengthen its position in the market, particularly in Germany.
LambdaNet’s service portfolio includes Ethernet, Wavelength, Colocation, Internet Protocol (IP) based data services and other transmission services.
The services are delivered to both carriers and enterprises, primarily throughout Germany.
LambdaNet operates in Germany and has network and subsidiaries in the Czech Republic and Austria. The business offers services out of 25 data centres across Germany.
euNetworks chief executive officer Brady Rafuse said the transformational acquisition for their business combining LambdaNet with the current euNetworks business will bring them much greater scale to their core German business, as well as adding great customers, people and assets.
"Over the last 18 months we have been focused on implementing our operational model and delivering strong organic growth. We have however always believed that there is great inorganic growth potential in the market as well. We intend to actively participate in market consolidation where appropriate, and have highly motivated investors supporting us in this activity," Rafuse said.