In a statement, Baltcom says the two companies will continue to operate as separate entities, with both sets of subscribers continuing to receive existing services and able to apply for additional ones such as telecoms bundled with electricity.
According to Vojko Rovere, chairman of the board at Baltcom, the transaction will see the company expand its coverage area by 30%.
The biggest winners will be Izzi subscribers, who will be able to enjoy such services as broadband internet access at up to 250Mbps already provided to Baltcom customers.
Both Baltcom and Izzi are long-established companies, having been founded in 1991 and 1994 respectively.
Although they previously reached an agreement to merge back in 2010 and received the approval of the competition authority, nothing materialised.
Baltcom and Izzi compete directly with the incumbent telco Lattelecom and are believed to have a combined total of around 300,000 subscribers.
Baltcom lists by RPax One SA, Axa Private Equity and Resource Partners, while Izzi was formerly backed by Contaq Latvia Cable.