Fiber-optic network services provider euNetworks GmbH, a subsidiary of euNetworks Group Ltd. (SGX:H23.SI), has closed its purchase of LambdaNet Communications Deutschland AG from 3U Holding AG.
euNetworks announced May 19 that it planned to buy LambdaNet Communications for 25 million euros in cash (subject to adjustment), a 2 million euro principal payment on an existing intercompany loan, as well as an assumption of certain financial guarantees. LambdaNet will retain a 7.8 million euro balance of the intercompany loan payable to 3U Holding AG (see “euNetworks to acquire LambdaNet Communications Deutschland AG”). In announcing the closing of the deal, euNetworks did not disclose whether an adjustment to the cash payment had occurred.
LambdaNet Commuinications’ service portfolio includes Ethernet-, wavelength-, collocation-, and Internet Protocol (IP)-based data and other transmission services delivered to both carriers and enterprises, primarily throughout Germany. With the new assets in its portfolio, euNetworks says it will now manage fiber-based connectivity to 37 cities in nine countries.
The sale is expected to provide greater opportunities for euNetworks as well as imporved cash flow. The bandwidth infrastructure provider says it expects further deployment of custom fiber-based network offerings across Western Europe in line with demand.
“We are moving forward with our integration plans, working quickly to deliver network synergies from combining the LambdaNet business with euNetworks,” said Brady Rafuse, CEO of euNetworks. “With added on-net reach and an expanded product portfolio, customers will benefit from deeper and richer solutions from euNetworks. I am excited for the opportunity ahead.”