BBJ reports that under the terms of the deal, which is subject to regulatory approval and expected to close in Q1 2018, Invitel will provide network and IT services to Digi worth HUF2.8 billion annually over a 10-year period.
At the same time, Digi will supply network services to Invitel worth HUF500 million a year.
Invitel will now focus on the corporate and IT solutions market, working under the brand name Invitel Solutions. As previously reported by Broadband TV News, Invitel was acquired by the China-CEE fund (CEE Equity) earlier this year for an enterprise value of €202 million.
Digi, which is owned by Romania’s RCS&RDS, is one of the leading providers of pay-TV and broadband services in Hungary, with its main competitors being Magyar Telekom and UPC Hungary.
Invitel is the leading alternative telco in Hungary, passing over one million homes and currently serving both residential and corporate customers.