DIGI completes Invitel acquisition

31 May 2018

Hungarian cableco DIGI has announced the completion of its acquisition of rival Invitel Group’s consumer/SME fixed network telecoms operations on 30 May 2018 at a price of EUR135.4 million (USD157.2 million). As reported earlier this month by CommsUpdate, Hungary’s antimonopoly authority Gazdasagi Versenyhivatal (GVH) approved the deal to buy Invitel Tavkozlesi (Invitel) – originally agreed in July 2017 – but added significant conditions including the sale of Invitel network operations (including subscriber contracts) in 16 municipalities within six months of closure (i.e. by end-November 2018). The GVH found that DIGI and Invitel networks overlapped in 34 municipalities, and that in 16 of these municipalities the merger would result in a significant reduction in competition. DIGI is obliged to maintain the economic viability and competitiveness of all network sections in the meantime, whilst refraining from proactively migrating Invitel users to DIGI networks in the 16 areas specified for sale.

Invitel Group’s parent China-CEE Fund will now focus on its corporate services division Invitech Solutions, which serves large companies, public institutions and wholesale customers.

Hungary, DIGI (Hungary), Digi Communications, Invitech Solutions, Invitel (a subsidiary of DIGI)