The WHIR reports that Deutche Telekom is buying European hoster Strato for EUR275 million. This works out to just over $400 million and, based on published information, approximately 3.1x revenue and 8.6x EBITDA. (These multiples are based on published reports of Strato's results for the first 9 months of 2009 annualized.)
Please keep in mind that we do not know if there was any debt assumed by DT or if there were any other assets included as a part of the deal. Either of which would distort the multiples from what is shown above.
Disclaimer: This post is for general information purposes and is not meant to be taken as financial advice, a recommendation to buy or sell any stocks mentioned above, a comprehensive discussion of valuation or how to do the calculations discussed. Please be sure to consult your financial advisors when valuing your company, considering the sale of your business or making other financial decisions.
