Operations of Digi Communications in Hungary acquired by 4iGTuesday, November 30th, 2021
Digi Communications N.V. Announces The Signing Of The Transaction For The Sale Of Its Operations In Hungary To 4iG
BUCHAREST — Digi Communications N.V, (“DIGI”) announces today, November 30, 2021, the concluding of the sale and purchase agreement regarding the acquisition of its Hungarian operations by 4iG Plc. RCS & RDS (The Company’s Romanian subsidiary) and 4iG agreed on 29 March, 2021 on the terms of a preliminary agreement for a possible transaction concerning the purchase of DIGI Távközlési Szolgáltató Ltd. (Digi Hungary) and of its subsidiaries Invitel, Digi Infrastruktúra and I TV.
On November, 29, 2021 the parties finalised the negotiations ad executed the transaction documents for the transfer of the Hungarian subsidiaries and operations for a transaction value of EUR 625 million. The transaction is subject to conditions, including the competition authority’s clearance. DIGI and 4iG will cooperate to complete the transaction as soon as possible.
DIGI Group has been active in Hungary for the last 23 years, during which time it built a leading telecommunications services provider in the local market, offering a complete portfolio of cable and satellite TV (DTH), fixed and mobile data, and fixed and mobile telephony services. At the same time, DIGI is the first telecom service provider in Hungary to launch Fiberlink 10G, the highest bandwidth package, thereby starting a new chapter of technological development in this market.
By 2020, the Hungarian subsidiaries served more than 1.1 million subscribers nationwide and had over 2.5 million Revenue Generating Units (RGUs). In the same year, Group’s consolidated sales revenue in Hungary were HUF 70 billion (approx. EUR 200 million) and its adjusted EBITDA reached HUF 19 billion (approx. EUR 54 million).
According to the Hungarian National Media and Telecommunications Authority (NMHH), DIGI is the second operator by market share in the pay-TV, broadband internet and fixed telephony segments. With a unique business model in the local market, DIGI Group’s activities in Hungary have included the operation of several TV stations, sports channels and four other thematic channels. The extensive scale of the activities in Hungary was also largely supported by the large number of employees, around 3,000.
“Hungary has been the local market where we have carried out our activity for the most time of our existence. We have built there, together with the local team, a business that we are very proud of which is one of the largest, most technologically developed and advanced operators on this market. However, taking into account our strategy to develop our business towards Western European markets, it is time to leave our partners from 4iG to continue this story of development and we are confident that they will continue our work and expand the success of this operator” declared Serghei Bulgac, CEO of Digi Communications N.V.