EQNet buys rival ISP, plans share sale
EQNet Zrt, a privately owned Hungarian internet provider, is buying rivals before selling shares to the public in coming years to take advantage of growth in its underdeveloped domestic market, Bloomberg reported.
The company said it paid several hundred million forints for the business and used money from its own funds. It is now looking for more acquisition targets, Graur said. EQNet needs to reach Ft 2 billion revenue by 2010 before it can go ahead with an initial public offering, Chairman Lajos Fogoly said at the press conference. The company, which previously focused on corporate clients, is looking to absorb its smallest rivals in Hungary, Graur said.
EQNet also bought internet service contracts from Meditcom Kft yesterday, it said.
Â
ÂÂ
While internet cafes and wireless networks are ubiquitous in Budapest, Hungary's internet market is less developed overall than in the rest of the European Union. The proportion of households with access is about half that of the EU average.
“This is the segment where the real growth opportunity is,” Graur said. “We had enough of treading water on the internet market. The market is small and can't support all the providers there are now, so consolidation is inevitable.”
ADVERTISEMENT
MNB Int'l Reserves Fall EUR 358 mln in May
Parl't Approves Amendments to Legislation on Judiciary
Dana to Invest HUF 36 bln in Capacity Expansion in Hungary
Ibis Styles Budapest Airport Hotel Wins Best of Budapest & H...
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
