Russian national operator Rostelecom has announced that its subsidiary Bashinformsvyaz has signed an agreement to acquire the communications assets belonging to construction firm Morton Group for RUB633 million (USD9.2 million). The transaction includes three companies which provide broadband, pay-TV and voice telephony services for new housing developments in Moscow and the Moscow Region. The Group services more than 40,000 residential and 2,000 corporate customers, and in 2015 its telecoms business generated revenue of RUB428 million and an EBITDA margin of 34%. Morton has no debt obligations.
Maria Florentyeva, senior vice-president of Rostelecom, commented: ‘The acquisition is in line with our strategy to build a competitive position in the broadband and pay-TV market, including through local M&A transactions. The deal will allow Rostelecom to enter a new housing development sector, where, historically, the company’s services have been under-represented’.