Under the terms of the agreement, 4iG will acquire a 100% stake in the group for an undisclosed fee.
The transaction is aimed to be completed by September, subject to due diligence of Digi Hungary and its subsidiaries, the signing of a sale and purchase agreement and the necessary competition authority approvals.
Digi is a leading provider of telecom services in Hungary. It had over 1.1 million subscribers nationally and over 2.5 million RGUs as of the end of 2020. In 2020, the group’s consolidated revenues in Hungary amounted to HUF70 billion (€200 million) and its adjusted EBITDA reached HUF19 billion.
4iG is one of the leading companies of the Hungarian IT and ICT market and plays a leading role in its knowledge-based digital economy. 4iG has been present in the field of industry and industry-independent innovative technologies for more than 25 years.
Broadband TV News notes that despite being present in Hungary for many years, Digi has found the going increasingly difficult.
Besides not being permitted to apply for a 5G licence, it faced obstacles in acquiring the alternative telco Invitel.
Earlier this month, it was, along with Magyar Telekom, also reported to be allowing the reception of some of its pay-TV services free of charge.