Romanian telco Digi Communications has completed the acquisition of Hungarian operator Invitel, in a deal reported to be worth €135.4 million, according to reports in the Romanian press.
A deal was originally struck last year, but the deal has been awaiting regulatory approval since then. In order to gain the necessary approval, Digi Communications agreed to divest a number of its existing assets in the Hungarian market.
“This transaction will allow the group to consolidate its position in the Hungarian telecommunications market, and to expand its customer reach and experience, as well as to create better operational synergies,” said a Digi Communications’ statement to its shareholders.
According to the company’s financial report for Q1 2018, Digi Communications now boasts 13.4 million fixed line and mobile subscribers spread across Romania, Hungary, Spain and Italy.
This year, Digi Communications has invested €76.8 million in capex, mainly on network maintenance and upgrade projects, as it looks to boost its 4G coverage. This represents a year on year increase of 13.6 per cent.
While Digi Communications still derives the vast majority of its revenues from Romania, its newly bolstered Hungarian operations now provides €150 million of income per year – approximately 16.3 per cent of the company’s €917 million total revenues. – Total Telecom