Cgates snaps up smaller rival TPG

21 Sep 2016

Lithuania’s second largest fixed broadband operator by subscribers, Cgates, has completed the acquisition of smaller cableco Telekomunikaciniu Paslaugu Grupe (TPG) for an undisclosed figure. TPG provides cable TV and internet services in Panevezys and Ukmerge via subsidiaries Kateka, Elekta and Teletinklas, which have a combined customer base of around 30,000. Cgates, which has been wholly owned by Estonian cable TV company Starman since February 2015, said the transaction has already been approved by Lithuania’s Competition Council.

The latest deal follows Cgates’ purchase of Remo Televizija, based in the cities of Elektrenai and Kaisiadorys, in May this year, and the October 2015 acquisition of fibre-optic network operator KAVA, which provided telecoms services to more than 20,000 customers in Vilnius, Klaipeda, Siauliai and Panevezys, with a network passing around 100,000 households. The acquisition of KAVA increased Cgates’ network coverage by 30%, to 400,000 homes.

Lithuania, Cgates