Hungarian fixed network operator Invitel Group has announced that its retail and SME business is being acquired by cableco DIGI Group for HUF43 billion (USD164 million). The sale of its retail unit Invitel Tavkozlesi will enable Invitel Group’s current owners to focus on corporate services division Invitech Solutions, which serves large companies, public institutions and wholesale (telco/ISP) customers. As part of the deal, the pair signed a long-term cooperation agreement that will see Invitech Solutions provide network and IT services to DIGI for a minimum annual value of HUF2.8 billion for at least ten years, while DIGI will also supply network services to Invitech Solutions over a similar period of time, averaging HUF500 million a year. Invitel Group’s private equity parent China-CEE Fund said it remains committed to the Hungarian market and supports Invitech Solutions’ development plans in the corporate IT and telecoms infrastructure markets.
Completion of the transaction, which is subject to regulatory approval, is expected to take place in the first quarter of 2018.