Liberty completes on KBW
December 15, 2011
Liberty Global has announced that, following receipt of regulatory approval, it has completed the purchase of Kabel BW GmbH (KBW), the third largest cable TV operator in Germany, in accordance with the terms of its previously announced acquisition agreement. The acquisition of KBW, when combined with Unitymedia, the country’s second largest operator, will significantly increase the scale of Liberty Global’s operations in what is now Europe’s largest and fastest growing cable market.
KBW provides television, broadband internet and telephony services in the German federal state of Baden-Württemberg, which is one of the most prosperous regions in Europe. As of September 30, 2011, KBW’s broadband communications network served 2.4 million customers who subscribed to 3.8 million video, telephony and broadband internet services.1
Mike Fries, President and CEO of Liberty Global said: “This is a major step forward for German consumers and our Company. The combination of Unitymedia and KBW creates a powerful platform for innovation and growth. Together, our German operations pass over 12 million homes, provide over 10 million subscription services and generate approximately €1.6 billion in annualized revenue.2 It’s well known that the cable industry in Germany is the primary source of infrastructure-based competition with the incumbent Deutsche Telekom, and we intend to capitalize on the opportunity to bring German consumers the most advanced broadband and digital TV products available.”
The consideration paid by Liberty Global to acquire KBW was based on an agreed upon enterprise value of €3.16 billion.