Telefónica, the largest telecommunications company in Spain, announced on Thursday that it has agreed to buy Telecom Italia’s German broadband unit, Hansenet.

Telefónica, in its filing to the Spanish market regulator, said that it would purchase Hansenet from Telecom Italia for $1.34 billion, and the deal would be carried out in cash.

According to the company, the acquisition would help it to improve its standings in the German telecommunications market, which has become highly competitive in the past few years.