Hungary’s 4iG and its two subsidiaries Hungaro DigiTel and CarpathiaSat have entered into a preliminary agreement with Space-Communication (Spacecom) to acquire a 51 % stake in the latter through a target placement.
A non-binding agreement on the details of what would be 4iG’s first international transaction was announced by the parties on the Budapest and Tel Aviv stock exchanges. Spacecom is traded on the latter and operates four geosynchronous Amos satellites in various orbital positions (Amos 3, covering Hungary and CEE; Amos 4; Amos 7; and Amos 17), providing provides broadcast and broadband satellite services to its customers worldwide. Following due diligence of the Spacecom, the successful completion of the transaction is conditional upon the approval of the acquisition by Spacecom’s General Assembly and the Israeli Ministry of Communications. The transaction is estimated to be worth $65 million.
Commenting on the transaction, Gellért Jászai, CEO of 4iG, said: “Following a preliminary agreement with Spacecom, I am confident that we will be able to complete the transaction this autumn, which would also mean that the 4iG Group has successfully completed its first international acquisition. I consider this transaction as a milestone not only in the growth of our group, but also in the preparation of an agreement that could open new doors for Hungary in the space industry and space telecommunications.
“Spacecom’s decades of technological experience, innovative solutions, global market knowledge and professional staff can provide CarpathiaSat with a high level of support for the development and launch of the first Hungarian commercial satellite. Thus, the acquisition is an important step for us in terms of knowledge transfer and the development of international strategic partnerships”.
4iG aims to complete due digilence by August, allowing it to make a final offer for a 51% stake in Spacecom. The transaction is expected to close this autumn.
4iG is a dominant player in Hungary’s IT and ICT markets, as well as one of the leading company groups in the country’s knowledge-based digital economy.