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United to buy Vivacom
Posted on Friday, 08 November 2019 11:50
BC Partners-owned United Group is acquiring Vivacom, the Bulgaria-based telecommunications operator put up for sale earlier this year, for a reported EUR 1.20 billion.
Subject to antitrust approvals and other conditions, the deal is slated to complete in the second quarter of 2020.
United will fund the transaction through a combination of new debt and cash on hand.
Established in 1992, Vivacom is Bulgaria’s first and largest telecommunications company, which offers fibre broadband, mobile communications and digital television services to 1.80 million private and commercial customers.
The group’s 4G long-term evolution network covers 99.0 per cent of the nation and has been available to more than 6.00 million households since June, according to its website.
Vivacom also provides a range of satellite services, including the uplink and downlink of radio and television channels, playout operations, as well as fixed and very small aperture terminal mobile data connectivity.
For the financial year ended 31st December 2018, the target posted revenue of BGN 948.00 million (EUR 484.71 million), up 6.6 per cent from BGN 890.00 million in the preceding 12 months.
In the three months to 31st March 2019, Vivacom generated revenue of BGN 235.20 million.
The deal will help to speed up United’s growth, expand its geographic reach and strengthen its position as the leading telecommunications and media provider in South Eastern Europe.
Headquartered in Amsterdam, the buyer operates in six countries and offers services to over 1.80 million homes across the region.
The deal represents United’s second transaction since being acquired by BC Partners for EUR 3.00 billion in March this year.
Back in May, the group agreed to buy Croatia-based telecommunications services provider Tele2 doo (Tele2 Croatia) for EUR 220.00 million, including debt.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 513 deals targeting wired telecommunications carriers announced globally since the beginning of 2019.
In the largest of these to date, Cellnex Telecom agreed to purchase Arqiva’s UK telecom division for GBP 2.00 billion.
IP-Only, Iliad 7 and Hyperoptic, among others, have also been targeted in the year so far.
© Zephus Ltd