Hungary-based IT service management company 4iG struck a preliminary deal to buy the operations of DIGIMobil parent Digi Communications, as it looks to advance market expansion plans.
In a statement, Digi Communications said the non-binding agreement covers the sale of a 100 per cent stake of its Hungarian unit for an undisclosed sum, and finalisation of the deal is expected by the end of September.
The move forms part of a 4iG goal of establishing a “national telecommunications platform” in partnership with broadcasting company Antenna Hungaria, it explained in a related statement.
Gellert Jaszai, 4iG chairman and CEO, said the takeover would aid the company in gaining “a dominant position in a new strategic industry” in Hungary.
Digi Communications also has operations in Romania, Italy and Spain. It entered the Hungarian market in May 2019 and ended 2020 with 173,000 mobile connections, excluding IoT, GSMA Intelligence estimated.
The company also offers cable TV, fixed internet and line telephony services in the market, and generated net profit of €16.3 million in 2020, down from €40.5 million in 2019.Subscribe to our daily newsletter Back