The transaction, announced on the homepage of the Budapest Stock Exchange (BÉT), may be closed later this year after the due diligence of T-Systems and obtaining the relevant regulatory approvals.
Following the transaction, the financial details of which have not been released, 4iG will become the owner of both T-Systems Hungary and its subsidiaries. Although the parties have agreed on the most important terms of the transaction, full details will be worked out in the next few months.
The transaction does not include the small and medium enterprise segment sales business of T-Systems, which will be reorganised into Magyar Telekom, prior to signing the final sales agreement. After closing the sales process, 4iG and Magyar Telekom will enter into a long term partnership, since T-Systems will continue to sell Magyar Telekom’s telecommunications services in the large enterprise and public segments. Furthermore, 4iG will also acquire rights to use the T-Systems brand name for an additional three years.
Commenting on the transaction, Gellért Jászai, president and CEO of 4iG, said: The accelerated digitalisation of the economy represents a unique opportunity for 4iG. The objective of our company is to become a major corporation of the IT sector in this dynamically evolving market environment in Hungary, and within 2-3 years, in the region.
“T-Systems Hungary is one of the most important milestones in achieving our growth objectives. And the further development of our company may be boosted by the fact that, upon successfully closing the transaction, Magyar Telekom, a leading provider of the telecommunication market, will also become our strategic partner”.
Tibor Rékasi, CEO of Magyar Telekom, added “We are proud of T-Systems, which – with its 1,600 strong own workforce and thousands of people at partner companies – is a leading info-communications provider of the country and a transformation partner of several corporations and institutions. We have agreed with a professional strategic investor that will continue this innovation activity, and can support the further growth of T-Systems.
“The objective purpose of Magyar Telekom remains the same: to always provide our customers with the best quality, integrated services, on the best network. We continue to build an efficient and agile Telekom, that strengthens its market leader positions, develops and grows, hence creates value for shareholders and society as a whole”.