Telecoms company ETel, which operates in central and eastern Europe, has acquired Czech telco Globix s.r.o., in a cash and stock deal worth $12 million (€13.4 million).
Dublin-based ETel already held a 64 per cent stake in the Czech firm and yesterday's deal completed the buyout of the remaining 36 per cent held by two private shareholders.
One of these shareholders was another Irish entrepreneur, Mr Enda O'Coineen of Kilcullen Capital partners. The other was a Czech partner.
Globix was recently awarded a full public telecommunications operators licence by the Czech regulator. Since 1997 it has offered integrated voice, Internet and data services to 700 corporate customers.
Mr Sean Melly, founder and chief executive of Dublin-based ETel, said the acquisition would accelerate ETel's plans to develop and operate the most advanced telecommunications infrastructure in central Europe.
He said the ETel group would invest a further €35 million (£27.5 million) to build a 100 kilometre metropolitan area network throughout Prague over the next few years. About 15 kilometres is complete, he added.
ETel also announced a rebranding of the company to ETel Czech Republic and the appointment of a new managing director, Mr Richard Pinc.
Last week, ETel announced a $50 million fund-raising which was led by Dresdner Kleinwort Benson Private Equity, Argus Capital Partners, Greenhill Capital Partners and Intel Capital.
Mr Melly has also expressed an interest in the central Europe divisions of the pan-European operator GTS, which could be worth more than $200 million.
ETel aims to raise an additional $100 million shortly to finance infrastructure build programme across central and eastern Europe, which is forecast to cost in the region of $130 million.
The firm may achieve this through a strategic partnership and a negotiated debt facility worth $30-50 million with a bank.
Headquartered in Dublin, Ireland, ETel, was set up last year by Mr Sean Melly, the founder and chief executive of TCL Telecom, which was bought by WorldCom Ireland in 1997.
ETel focuses exclusively on the Czech Republic, Hungary, Poland and Slovakia.
