MTI – Econews
Monday, July 24, 2017, 08:31
Hungarian TV, telecommunications and internet service provider Digi Távközlési has agreed to buy the retail and small business clients of local peer Invitel for about HUF 43 billion, Invitel said late Friday, according to Hungarian news agency MTI.
As part of the deal, which still requires regulatory approval, Invitel will deliver network and IT services to Digi worth a minimum annual HUF 2.8 bln over ten years and Digi will supply network services to Invitel worth an average HUF 500 million a year.
Invitel, under the name Invitech Solutions, will focus on the corporate IT and telecommunications solutions market. The transaction is expected to be closed in the first quarter of next year.
The China-CEE Fund bought Invitel for HUF 63 bln earlier this year. It plans to plough back the purchase price of Invitel into Invitech Solutions.
Invitel has consolidated annual revenue of some HUF 45 bln. The company employs about 1,200 people.
Invitel CEO David Blunck said Invitech Solutions plans to double its annual revenue from HUF 24 bln at present by broadening its IT scope, expanding its national optical network and making acquisitions.
Digi and Invitel control 11.9% and 12.3%, respectively, of Hungaryʼs fixed line phone market. They control 16% and 9.1% of the fixed line internet market, and 25.4% and 4.8% of the TV market.
Digiʼs parent company is owned by Zoltán Teszári, a Romanian national of Hungarian descent.