Romania-based Digi Group announced a preliminary deal to sell its Hungarian business to local company 4iG for an undisclosed sum. The sale would include Digi Hungary's operations and its subsidiaries Invitel and I TV. The acquisition is expected to be completed by September, subject to the due diligence of Digi Hungary and its subsidiaries, the signing of a sale and purchase agreement, and the necessary competition authority approvals, Digi said.
Digi is a large player in the cable TV and fixed telecoms market in Hungary, but has encountered obstacles in its efforts to become a full mobile operator there. Most recently it was excluded from the country's 5G tender. At the end of 2020, Digi Hungary served more than 1.1 million subscribers nationwide and had over 2.5 million RGUs. In 2020, Digi generated revenue in Hungary of HUF 70 billion and adjusted EBITDA of HUF 19 billion.
4iG is one of the largest companies on the Hungarian IT market and has recently expanded into the satellite market through acquisitions. The company said the takeover of Digi would fit well with its plans to expand in the telecom market, giving it its own broadcast operations, broadband services and fixed and mobile telephony.
