4iG agrees acquisition of DIGI in Hungary

Via 4iG

Nov 30, 2021

Budapest: 4iG will be one of the largest domestic and regional telecommunications providers.

DIGI's due diligence and contracting process launched in March has been completed, as a result of which 4iG Plc has entered into a final agreement with the Romanian RCS & RDS Group on the acquisition of the media group's Hungarian interests, the capital market company announced on the Budapest Stock Exchange. With the completion of the transaction and its acquisitions in the infocommunications sector in the past year, 4iG will become one of the largest domestic telecommunications service providers, while the group will also be able to build a dominant position in the telecommunications market in the Western Balkans.

With the acquisition of one of Hungary's leading telecommunications and media services companies, 4iG Plc. The value of the transaction is EUR 625 million, approximately HUF 232 billion. The transaction may close in January 2022 following regulatory proceedings.

DIGI, with its extensive service portfolio, ranks second in the Hungarian fixed voice, internet and television market. Thanks to its high-tech subscriber end-to-end optical network (FTTH), enhanced backbone and satellite infrastructure developments, the company is able to provide high-quality service anywhere in the country. The media company also has its own television channels, and in addition to its sports broadcasters, it has four other thematic channels among television broadcasters. DIGI launched its mobile telecommunications service in Hungary in May 2019. Thanks to continuous improvements, the company has 2,300 proprietary base stations, the DIGIMobil service provides outdoor mobile coverage to more than 90 percent of the population. Thanks to its advanced infrastructure, the company was the first in Hungary and one of the first in the region to launch Hungary's fastest residential Internet service, with a bandwidth of 10 Gbit / s.

“The acquisition of DIGI is a significant strategic step forward for our company in several ways. Thanks to a successful agreement with RCS & RDS Media Group and our recent domestic and international acquisitions in the telecommunications industry, we have laid the foundations for a new regional telecommunications group over the past roughly one year. Thanks to the acquisitions, we will significantly strengthen our market position in the infocommunications sector and become one of the largest telecommunications companies in Hungary. Our investments in the field of telecommunications and telecommunications infrastructure, complemented by DIGI's high-tech optical and mobile telecommunications infrastructure, will take the 4iG Group's capabilities to serve domestic and regional retail and business customers to a new level.

The acquisition of DIGI may be an important step in the establishment of a national telecommunications and telecommunications infrastructure service provider, which will be merged with public and private capital, with the platform company Antenna Hungária as announced by the parties at the end of August. Pursuant to its strategic agreement with the state, 4iG will contribute its telecommunications interests to Antenna Hungária Zrt., With which 4iG will acquire a majority stake in the company. As a result of the merger, a new regional telecommunications holding company will be established, whose domestic interests (Antenna Hungária, DIGI, Invitel, Invitech, AH Net) may be supplemented by additional telecommunications companies due to the ongoing acquisitions in the Western Balkans.

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