4iG signs preliminary agreement on DIGI acquisition
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Listed IT company 4iG said it signed a preliminary, non-binding agreement with the Romanian RCS & RDS consortium on the acquisitions of DIGI Távközlési Szolgáltató Ltd. and its subsidiaries, Invitel Ltd. and I TV Ltd., according to a press release sent to the Budapest Business Journal.
With the transaction announced on the Budapest and Bucharest Stock Exchanges, 4iG would acquire a 100% stake in Hungary’s leading telecommunications and media service group. The deal is subject to due diligence of the target company and its subsidiaries, the signing of a sale and purchase agreement, and the necessary competition authority approvals.
DIGI Group is a leading telecommunications service provider in Hungary, with 23 years of experience and a broad service portfolio covering cable TV, fixed internet and data, mobile telecommunication services, fixed-line telephony and DTH services. DIGI serves more than 1.1 million subscribers nationwide and has over 2.5 million Revenue Generating Units (RGU). Most networks operated by DIGI are based on advanced fiber-optic technology.
According to the National Media and Infocommunications Authority, DIGI is the second-largest player in Pay TV, Broadband Internet, and Fixed Voice markets. DIGI also has its own television channels, and in addition to its sports stations, it is present with four other thematic channels among television broadcasters. The number of employees of DIGI Group in Hungary exceeds 3,000 people. In 2020, its consolidated sales revenue was HUF 70 billion, and its adjusted EBITDA reached HUF 19 billion. DIGI has 61, while its subsidiary Invitel, has an additional 16 customer service offices in major cities across the country.
“The potential acquisition of the Hungarian DIGI Group represents a huge step forward for 4iG, with the acquisition we can gain a dominant position in a new strategic industry. We intend DIGI to play an important role in the creation of the national telecommunications platform, planned jointly with Antenna Hungária, with which we can open a new chapter in the domestic market,” said Gellért Jászai, president and CEO of 4iG. “DIGI Group uses state-of-the-art technologies in terrestrial broadcasting, optical signal transmission, and broadband internet and wired voice services. DIGI also has significant potential in the domestic mobile telecommunications market, and we see serious synergies in satisfying IT needs and developing common services, as well as further growth opportunities.”
Serghei Bulgac, CEO of RCS & RDS S.A., added, “DIGI Group is a leading company in the Hungarian telecommunications market, we are proud of our achievements in the past decades. At the same time, we are constantly analyzing and adapting our international presence and exploring further growth opportunities. Based on these we see that, under the right conditions, the transaction announced today could be an important step forward in the strategy of both parties. We are at the beginning of a long and exciting process, but we are hopeful that we will be able to close the transaction successfully with 4iG.”
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