Cellcom to purchase NetVision and merge operations

17 Jun 2011

Israel’s largest mobile network operator by subscribers, Cellcom, has announced that it will acquire local internet service provider (ISP) and international call carrier NetVision and merge the operations of the latter with its own, according to Globes Online. Both Cellcom and NetVision are already controlled by the same company, Discount Investment Corporation (DIC), which is in turn a subsidiary of Nochi Dankner’s ID Holding Corp; DIC currently holds a 48.3% stake in the mobile operator and a 38.1% share of the ISP. Under the terms of the deal Cellcom will pay ILS1.54 billion (USD444.7 million) in order to take control of NetVision’s operations, and the respective boards of directors of both companies have reportedly already approved the merger. As part of the agreement Cellcom has also agreed to pay NetVision 5% interest on the purchase price from 1 April 2011 – just after the two companies entered into negotiations regarding a potential tie-up – until the date on which the acquisition is completed.

Israel, Cellcom, NetVision