[Esprit Telecom Completes Acquisition of PLUSNET From Thyssen Telecom]
LONDON/DUSSELDORF--(BUSINESS WIRE)--June 15, 1998--Esprit Telecom Group plc announced that it completed the acquisition of the business of PLUSNET Gesellschaft fur Netzwerk Services mbH ("PLUSNET") from Thyssen Telecom AG today and made a payment of DM 308 million (103 million pounds sterling).
The combination of Esprit Telecom, one of Europe's leading independent telecommunications companies, and PLUSNET, one of Germany's leading competitive telecommunications companies with sales and network infrastructure stretching across the country, creates a powerful force in the $46 billion German telecommunications market, Europe's largest.
"With the deal complete, we will continue our programme of rapidly integrating the two companies and growing Esprit Telecom's German business," said Dr. Jurgen Hernichel, joint managing director of the combined German company.
The acquisition of Dusseldorf-based PLUSNET adds six sales offices and 10 points of presence in Germany to Esprit Telecom's existing pan-European network and sales infrastructure. Esprit Telecom has existing sales offices in 20 major cities in the United Kingdom, Germany, The Netherlands, Spain, France, Belgium, and Italy and points of presence in 19 European cities.
Today's payment reflects an initial adjustment to the DM 315 million purchase price, per the terms outlined in the acquisition agreement. Pursuant to the acquisition agreement, this payment may be adjusted downwards to a minimum of DM 254 million (86 million pounds sterling) or upwards to a maximum of DM 362 million (123 million pounds sterling), depending upon whether PLUSNET under-achieves or over-achieves planned revenues of DM 84.5 million (29 million pounds sterling) for the financial year ending 30 September 1998.
Esprit Telecom expects to receive official confirmation of the completion of the transaction from the Commercial Registry in the next few weeks. |
