Hungary-based DIGI changes ownership
4iG becomes one of the largest national and regional telecoms operators
Following the completion of the due diligence and transaction documentation process of DIGI launched in March, a final agreement between 4iG PLC and the Romanian RCS & RDS Group has been reached on the acquisition of the Hungarian subsidiary of RCS & RDS. Following the closing of the DIGI transaction and 4iG’s other acquisitions in the info-communications sector implemented over the past year, 4iG will become one of the largest telecom operators in Hungary. 4iG will be able to build a decisive position in the Western Balkan telecom market too.
4iG continues to build its strategic telecommunications portfolio by acquiring one of Hungary’s leading telecommunications and media service providers, after 4iG reached an agreement and finalized a sale and purchase agreement with RCS & RDS consortium for the acquisition of DIGI Távközlési Ltd. and its subsidiaries. The transaction value is EUR 625 million, equivalent to approximately HUF 232 billion. The transaction is expected to close in January 2022, subject to regulatory clearance.
DIGI, with a broad portfolio of services, ranks second in the Hungarian fixed voice, internet, and TV market. The company provides high quality services anywhere in the country due to its state-of-the-art fibre to the home (FTTH) network, reinforced backbone, and satellite infrastructure. DIGI also has its own television channels and, in addition to its sports channels, it is present in the television broadcasting market with four thematic channels. DIGI launched its mobile telecommunications service in Hungary in May 2019. Thanks to continuous developments, the company has 2,300 owned base stations and DIGIMobil service provides outdoor mobile coverage to more than 90% of the population across the country. Thanks to its advanced infrastructure, the company was the first Hungarian operator and one of the first in the region to launch the fastest residential internet service in Hungary, with a bandwidth of 10 Gbit/s.
“The acquisition of DIGI represents a significant strategic step forward for 4iG in several respects. Due to the transaction agreement completed with RCS & RDS 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 year or so. Due to these acquisitions, we have significantly strengthened our market position in the info-communications sector and become one of the largest telecommunications companies in Hungary. Our investments in telecoms and telecoms infrastructure, together with DIGI’s high-tech fibre and mobile telecoms infrastructure, will bring 4iG Group to a new level of capability in serving residential and business customers in Hungary and the region”, Gellért Jászai, Chairman and CEO of 4iG Plc, stressed.
The acquisition of DIGI could be an important step in the creation of a national telecoms and telecoms infrastructure company by combining public and private capital, the platform company of which will be Antenna Hungária, according to the announcement made by the parties at the end of August. 4iG will transfer its telecoms interests to Antenna Hungária Zrt. under the strategic agreement with the state, which will give 4iG a majority stake in the company. The merger will create a new regional telecommunication holding company, whose domestic interests (Antenna Hungária, DIGI, Invitel, Invitech, AH Net) will be able to complement with another telecoms companies in the Western Balkans, due to the ongoing acquisitions.
Budapest, 30th November 2021
communications and marketing director
sajto (@) 4ig.hu