M-Telekom buys KFKI, iWiW
[HU]
Magyar Telekom Nyrt continued its deliberate transition into an all-round telecom and IT company with the acquisition by its IT wing, T-Systems Hungary Kft, of one of Hungary’s biggest IT holdings, KFKI Group, for Ft 8.17 billion (€32 million). The deal includes an optional earn-out payment of Ft 1.5 billion that depends on the company’s 2006 financial performance.
“T-Systems’ strategic aim is to obtain rapid, short-term, overall growth on the IT market, and ultimately to make T-Systems the biggest IT provider in Hungary,” said Zoltán Tankó, deputy CEO of Magyar Telekom and head of T-Systems.
With competition for its core telecom business ever more intense, the move is linked to Magyar Telekom’s bid to make a more comprehensive offering to corporate customers than just voice minutes.
The latest acquisition means there is now a Hungarian provider at a similar level as international IT companies, stated Tankó.
“Using synergies, the KFKI Group and T‑Systems can produce added market value that customers will come to recognize,” he said.
T-Systems deals primarily with business communication and large-system outsourcing, while KFKI concentrates on software development and networking. Tankó said KFKI’s integration will be a gradual process that will last until January 2008. Magyar Telekom, which is majority owned by Deutsche Telekom, has not made any changes to KFKI’s management.
Also in 2006, Magyar Telekom-owned ISP T-Online Hungary Zrt acquired hugely popular social networking site iWiW for Ft 1 billion.
On the downside for the company, the company’s problems with its Montenegrin subsidiary appear to have ultimately led to the December departure of Chairman and CEO Elek Straub, who had led the company for 11 years. Magyar Telekom has been unable to close its 2005 financial year due to reporting shortfalls at Telekom Montenegro. The company called an EGM for Dec. 21 to seek to resolve its reporting failure, which saw it incur at least Ft 3.1 billion in extra costs.
Source: BBJ.hu
Magyar Telekom Nyrt continued its deliberate transition into an all-round telecom and IT company with the acquisition by its IT wing, T-Systems Hungary Kft, of one of Hungary’s biggest IT holdings, KFKI Group, for Ft 8.17 billion (€32 million). The deal includes an optional earn-out payment of Ft 1.5 billion that depends on the company’s 2006 financial performance.
“T-Systems’ strategic aim is to obtain rapid, short-term, overall growth on the IT market, and ultimately to make T-Systems the biggest IT provider in Hungary,” said Zoltán Tankó, deputy CEO of Magyar Telekom and head of T-Systems.
With competition for its core telecom business ever more intense, the move is linked to Magyar Telekom’s bid to make a more comprehensive offering to corporate customers than just voice minutes.
The latest acquisition means there is now a Hungarian provider at a similar level as international IT companies, stated Tankó.
“Using synergies, the KFKI Group and T‑Systems can produce added market value that customers will come to recognize,” he said.
T-Systems deals primarily with business communication and large-system outsourcing, while KFKI concentrates on software development and networking. Tankó said KFKI’s integration will be a gradual process that will last until January 2008. Magyar Telekom, which is majority owned by Deutsche Telekom, has not made any changes to KFKI’s management.
Also in 2006, Magyar Telekom-owned ISP T-Online Hungary Zrt acquired hugely popular social networking site iWiW for Ft 1 billion.
On the downside for the company, the company’s problems with its Montenegrin subsidiary appear to have ultimately led to the December departure of Chairman and CEO Elek Straub, who had led the company for 11 years. Magyar Telekom has been unable to close its 2005 financial year due to reporting shortfalls at Telekom Montenegro. The company called an EGM for Dec. 21 to seek to resolve its reporting failure, which saw it incur at least Ft 3.1 billion in extra costs.
Source: BBJ.hu
mystro - 22. Dec, 00:04