Netherlands-based United Group agreed to takeover Bulgarian operator Vivacom for an undisclosed amount, a move which advances a plan to expand its presence in Southeast Europe.
The sale is expected to be finalised in Q2 2020, subject to regulatory clearances. In a statement, United Group CEO Victoriya Boklag explained “Bulgaria is an attractive market and this acquisition will enable us to diversify the group further”, adding Vivacom is a “well-run company with strong management”.
She said United Group, which is majority owned by UK private equity company BC Partners, had completed over 100 acquisitions in its history.
Nikos Stathopoulos, a partner at the equity company, hailed the acquisition of “a dynamic telecom operator in a vibrant economy and a growing market that enables us to expand our geographic reach across Europe”.
Vivacom chairman Spas Roussev described the transaction as “a great opportunity” for the operator, its customers “and more generally for Bulgaria”. He added the company “will play a big role in the future development of United Group, their leading regional telecom and media platform”.
The acquisition broadens United Group’s operations in the region to seven countries.
Vivacom was put up for sale in July following a lengthy ownership battle. Financial Times reported in September United Group was one of two companies in the running to acquire the business, in deals which would value it at around €1.2 billion.Subscribe to our daily newsletter Back