France Telecom Acquires Groupe Diwan for $36m

Europe’s second largest carrier, France Telecom SA, is set to acquire a majority stake in network integration provider Groupe Diwan for 28m euros ($36m).

Under the terms of the deal, France Telecom will pay 41.97 euros ($53.50) per share for a 72% stage in Diwan. The transaction will be completed once it gains the approval of the competition authorities.

Lyon, France-based Diwan provides managed services and security for network and telecoms infrastructures. The company counts France Telecom among its customers, which also include BNP-Paribas, Alcatel, and Air France. In 2005, Diwan reported total revenue of 36m euros ($45.9m).

France Telecom’s network services business was rebranded as Orange Business Services in June, having previously been known as Equant. The company has been looking to acquire a network services company for some time, having lost out to Belgacom in a bidding war for Telindus in January.