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With a strategic acquisition, 4iG can continue to expand in the domestic telecommunications market after entered into a preliminary, non-binding agreement with the Romanian consortium RCS & RDS on the acquisition of Digi Távközlési Szolgáltató Kft. and its subsidiaries, ie Invitel Zrt. and I TV Zrt. It is advertised on the websites of the Budapest and Bucharest Stock Exchanges. transaction, 4iG would acquire 100 percent ownership In the leading group for telecommunications and media services in Hungary. The planned transaction is subject to the due diligence of the companies, the signing of the final sale contract and the necessary regulatory procedures may end at the end of september.
With 23 years of experience and a broad portfolio of services, Digi Group is one of the leading telecommunications companies in Hungary. The group is also present in the markets for cable television, cable internet and data transmission, mobile telecommunications, fixed telephony and DTH (Direct to Home) satellite services. Digi serves more than 1.1 million subscribers nationwide and has more than 2.5 million revenue subscriptions. (Income Generating Unit, RGU). Most of the networks operated by Digi are based on advanced fiber optic technology, the statement said.
According to the National Media and Information Authority, Digi is the second largest player in the competition for pay TV, broadband internet and fixed voice. Unique in the market, Digi also has its own television channels, and in addition to its sports stations, it is present among four other thematic channels among television stations. The Digi Group The number of its employees in Hungary exceeds 3,000. In 2020, its consolidated sales revenue was HUF 70 billion, and its adjusted EBITDA reached 19,000 million HUF. Digi has 61, while its subsidiary Invitel has another 16 customer service offices in major cities in Hungary.
Gellért Jászai, president and CEO of 4iG, emphasized in connection with the acquisition that with the move, 4iG could gain a dominant position in a new strategic industry. Digin will play an important role in the creation of the national telecommunications platform planned in conjunction with Antenna Hungária, with which we can open a new chapter in the Hungarian telecommunications market, he added. He also noted that Digi also has significant potential in the domestic mobile telecommunications market, and they also see serious synergies and increased growth opportunities to serve IT needs and develop common services.
Serghei Bulgac, CEO of RCS & RDS SA, said: “Under the right conditions, the agreement announced today could be an important step forward in the strategies of both parties. We are at the beginning of a long and exciting process, but we are confident that we will be able to successfully close the transaction with 4iG ”.
With a successful acquisition, 4iG will be able to become one of the largest national broadcasters, large companies that provide broadband Internet and fixed and mobile telephony services.
The acquisition would fit well with jointly announced expansion plans with Antenna Hungária in the 4iG telecommunications market, which the company launched last year with the establishment of CarpathiaSat, a public-private partnership established to launch the first Hungarian commercial satellite, and Hungarian DigiTel. , market leader in satellite telecommunications services. transactions for the acquisition of
What do you know about 4iG numbers?
4iG released its figures last year in February, according to which revenue increased 47 percent to HUF 24 billion in the quarter, full-year revenue grew 39 percent to HUF 57.7 billion, both new records.
Quarterly EBITDA increased 40.4 percent to HUF 2.2 billion (EBITDA margin 9.3 percent) in the latest quarter, while full-year earnings increased 24 percent to HUF 5 billion (8.7 percent margin).
Based on EBITDA, 4iG is preparing to acquire a much larger company with Digi.
Cover Image: Portfolio
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