mynth
10/2014

E-PLUS GROUP acquired by TELEFÓNICA DEUTSCHLAND

GERMANY Telecom / Operators EV 3b - 100b EUR

Context

The transaction involves the 100% equity acquisition of E-Plus Mobilfunk GmbH & Co. KG by Telefónica Deutschland from Dutch telecommunications group KPN. The acquisition marks a significant consolidation wave in the European telecom landscape, reducing the German mobile market from four infrastructure players to three. To clear antitrust scrutiny from the European Commission, the buyer agreed to structural concessions, involving the mandatory sale of 20% of the merged network capacity to a mobile virtual network operator. The corporate combination is designed to extract deep operational synergies and reduce overlapping network maintenance expenditures. The combination unites two separate subscriber portfolios to form the largest mobile provider in Germany by customer accesses, shifting the market balance against Vodafone and Deutsche Telekom. Financial settlement is structured via a cash disbursement combined with the issuance of new shares, resulting in the seller retaining a minority stake in the newly expanded holding company.

E-PLUS GROUP, which reported an EBITDA margin of in 2013, is valued in this transaction at an EV/EBITDA multiple of , representing a to the average currently observed in the TMT (Tech, Media, Telecom) sector (15.1x).

-> Deep-dive in TMT (Tech, Media, Telecom) market trends

Target

E-Plus Mobilfunk GmbH & Co. KG, based in Germany, operates as a mobile network carrier providing cellular voice, messaging, and mobile data connectivity to private and commercial subscribers. The operational setup relies on the management of national radio spectrum licenses and a widespread physical grid of base stations running on UMTS and LTE technical standards. Revenue intake is sustained through recurring contract subscriptions and prepaid mobile products distributed under the BASE storefront alongside various secondary and partner brands. Customer retention is driven by the structural integration of cellular connectivity into daily consumer habits, creating low voluntary churn across the subscriber base. The business model is protected by strict regulatory barriers, as the Federal Network Agency controls spectrum allocation and limits the marketplace to a handful of licensed infrastructure operators. The high capital expenditure required to replicate a nationwide cellular grid creates an insurmountable barrier for new entrants, insulating the company's regional market share from outside competition.

Ent. Value

Equity Value

Multiples

EV / Revenue

EV / EBITDA

EV / EBIT

Historical Financials (EUR)

Year
Rev
EBITDA
EBIT
2013
2012

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REFERENCES

Valuation range: EV 3b - 100b EUR

Revenue range: 2.5b - 5b EUR

EBITDA range: 500M - 1b EUR

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of E-PLUS GROUP by TELEFÓNICA DEUTSCHLAND are reserved for mynth community members. Register for free to unlock full data.

Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.

Press release: view release

Target: e-plus group

Acquirer: telefónica deutschland