RCS & RDS announced that its parent company, Digi Communications NV ("DIGI"), completed the sale of its Hungarian subsidiary to 4iG on November 30, so that now the group has completely exited the Hungarian market, remaining in the from Romania, Italy and Spain, for now, and below you have all the details.
Digi Communications NV (“DIGI”) announces today, November 30, 2021, the conclusion of the sale and purchase agreement regarding its operations in Hungary to 4iG.
RCS & RDS (the Romanian branch of DIGI) and 4iG agreed at the end of March 2021 the terms of a preliminary agreement regarding a possible transaction for the purchase of DIGI Távközlési Szolgáltató Ltd. and the subsidiaries Invitel, I TV and DIGI Infrastructure. On November 29, 2021, the parties completed negotiations and concluded the transaction documents for the transfer of DIGI's subsidiaries and operations in Hungary to 4iG for a transaction value of EUR 625 million. The transaction is subject to certain conditions, including the approval of competition authorities. DIGI and 4iG will cooperate to complete the transaction as soon as possible.
The DIGI Group has been present for 23 years in Hungary, during which time it has built a telecommunications service operator with a top position on the local market, offering a complete portfolio of cable and satellite television (DTH) services, data fixed and mobile, as well as fixed and mobile telephony. At the same time, DIGI is the first telecommunications service provider in Hungary to launch the Fiberlink 10G service, the package with the highest bandwidth, thus launching a new chapter of technological development in this market.
As of 2020, DIGI subscribers on the Hungarian market numbered 1,1 million nationally and revenue generating units (RGUs) of over 2,5 million. In 2020, DIGI's Hungarian operations recorded consolidated revenues of HUF 70 billion (EUR 200 million) and adjusted EBITDA of HUF 19 billion (EUR 54 million).
According to the Hungarian National Media and Telecommunications Authority (NMHH), DIGI is the second operator, by market share, in the segments of pay-TV, broadband internet and fixed telephony services. With a unique business model in the local market, DIGI Group's activities in Hungary included the operation of several television stations, sports channels and four other thematic channels. The extensive size of the activities in Hungary was also well supported by the large number of employees, approximately 3.000.
"Hungary is a market where we have been operating for most of our existence. We have built there, together with the local team, a business that we are very proud of and which is one of the largest, most technologically advanced and most successful operators in this market. However, given the reorientation of our strategy towards the Western European markets, the time has come to let our partners at 4iG continue this beautiful story and we trust that they will continue our work and amplify the success of this operator." said Serghei Bulgac, CEO of Digi Communications NV
