Telefónica O2 Germany is to buy Telecom Italia’s German subsidiary Hansenet for €900 million (£807m).
The acquisition will make Telefónica O2 Germany the number three player in the German market in terms of revenue, with a combined annual revenue of almost €5 billion.
The deal is subject to approval from the relevant competition authorities and is expected to be finalised during the first quarter of 2010.
Telefónica Europe chairman and chief executive Matthew Key (pictured) said: “As one of the leading DSL-providers in Germany, Hansenet is a perfect match for O2. Both companies are defined by a challenger spirit and have proven success stories in their fields.
“The arrival of Hansenet into the Telefónica family would be a huge step forward for us as a European integrated telecommunications provider. This agreement underlines our clear commitment to the German market”.
Telefónica O2 Germany will add Hansenet’s 2.2 million DSL customers. It will be able to offer an expansive bundle of mobile and fixed line products.
Telefónica O2 Germany is fourth in the Germany mobile market with 15 million mobile customers, behind Deutsche Telekom, Vodafone and E-Plus. It will have a total of 2.4 million DSL customers following the Hansenet purchase.