The deal will be financed via existing cash flow and is expected to close in Q4 2014, subject to merger control clearance.
Commenting on the acquisition, Alejandro Plater, CEO Telekom Austria Group, said: “The acquisition of blizoo is another step to further develop our challenging Bulgarian market. We see a huge growth potential together with Mobiltel in the strongly rising fixed-line segment, which will be ultimately beneficial for our Bulgarian customers”.
Thanasis Katsiroumpas, CEO Mobiltel Bulgaria, added: “This move opens a broad range of exciting opportunities for Mobiltel and strengthens our fixed-line portfolio. We are looking forward to a positive decision of the authorities as the acquisition would contribute to a better market environment and higher investments in the Bulgarian economy”.
Harald Rösch, CEO blizoo Bulgaria, said: “The majority of our customers take advantage of blizoo’s multi-play offering already today; but in combination with Mobiltel, we will be able to offer the full four-play service spectrum to our customer base and this also offers great opportunities for further growth”.
blizoo is the second largest fixed-line operator in Bulgaria and has an 8% share in the fixed broadband market and an 11% share in the TV market, according to Telekom Austria Group estimates.
Furthermore, the company currently has approximately 373,000 subscribers who obtain fixed voice, broadband and TV products via DOCSIS 3 technology. In total blizoo covers 1.3 million households.
In 2014, revenues and EBITDA amounted to approximately €47 million and €19 million respectively.