The Romanian arm of Greek operator Cosmote has confirmed it is to acquire rival Romanian mobile firm Telemobil – better known by its trading name Zapp- in a deal worth EUR207 million. In a statement, Cosmote said it would pay EUR61 million in share equity for the operator and take on debt and other liabilities – mainly concerning 3G and CDMA network rollout – estimated at approximately EUR146 million. Cosmote’s Romanian unit is currently the third-largest mobile operator in the country but it is the only one without a 3G license. However, it will now inherit a license via the Zapp acquisition. “The deal signed today marks a new cycle of growth and expanded customer base for Cosmote Romania since the 3G and CDMA licenses and infrastructure allow the company to offer cutting-edge data and voice services in Romania,” said Cosmote CEO Michael Tsamaz. No further information was disclosed around how Cosmote will integrate the two networks.

Zapp is the oldest mobile operator in the Romanian market having launched commercial operations in 1993. It holds a CDMA license in the 450MHz band and a 3G (WCDMA) license at 2100MHz. Its 3G network currently covers 23 Romanian cities. However, according to Wireless Intelligence data, Zapp was the smallest of Romania’s five mobile operators with fewer than 500,000 connections by first-quarter 2009. The market is led by Orange (10.1 million), followed by Vodafone (9.9 million), Cosmote (6.1 million) and RCS&RDS (1.8 million). The acquisition is subject, among other conditions, to the approval of relevant Romanian authorities.