Netia to acquire Millennium
WARSAW, Poland - August 9, 2000 - Netia Holdings SA (Nasdaq: NTIA), Poland's largest alternative fixed-line telecommunications services provider, announced that it has agreed to acquire the outstanding share capital of Millennium Communications S.A., a Warsaw-based provider of shared tenant telecommunications services (STS) in multi-tenant buildings.
The transaction is valued in the range up to USD 20.2 million, depending on the financial performance of Millennium through the end of 2001. The closing of the transaction is subject to conditions including the approval of both parties' respective supervisory boards as well as the consent of the Polish Anti-Monopoly Office and the acquisition by Newman Finance Corp. of a title to transfer all shares in Millennium.
Commenting on the acquisition, Meir Srebernik, President and Chief Executive Officer of Netia said: "This transaction will significantly facilitate Netia's strategy in developing its corporate business customer base in general, and in the Warsaw market in particular. The new acquisition will provide Netia with an immediate platform of customers from which we will achieve rapid penetration within the Warsaw market. This significant acquisition demonstrates our commitment to become the leading provider of integrated telecommunications solutions in Poland."
Gregory T. Geris, President of Millennium, said: "Netia will enable us to improve on all of Millennium's successful service principles of the past. We are committed not only to honor all of our existing commitments to vendors, customers and landlords but to aggressively expand our range of new and competitive services. In particular we are excited to offer Netia's integrated nationwide network services to the many headquarters operations we serve in Warsaw."
Millennium Communications is a leader in Poland in the facilities management area. Millennium's services include management of communications systems in office buildings, implementation of turn-key telecommunications solutions, project management, technical consulting and telecommunications engineering. At the end of 1999 Millennium had 6,758 users and revenues from the core business of of PLN 16 million. Currently, Millennium has 12,862 users.