Telefónica SA of Madrid has agreed to buy HanseNet Telekommunikation, Germany's fourth-largest broadband company from Telecom Italia SpA for €900 million in all-cash deal.
The buyout will make Telefónica, which also owns O2 Germany, the number three player in the German market. The deal is expected to close in early 2010.
Hamburg-based HanseNet operates under the brand name Alice and presently has about 2.2 million broadband subscribers in the country. Telefónica currently holds only 253,000 broadband home subscribers.