Magyar Telekom, part of the Deutsche Telekom group, has agreed to sell its enterprise IT/ICT division T-Systems Hungary to Hungarian IT company 4iG for an undisclosed price, the Budapest Business Journal reports. The deal involves Magyar Telekom taking over T-Systems SME customers while T-Systems will continue to offer Magyar Telekom’s telecommunications services to large business and public sector clients under a long-term partnership agreement. 4iG will have rights to use the T-Systems brand in Hungary for three years after the transaction is closed, which is expected by the end of 2019, subject to due diligence and regulatory approval.
Locally-listed 4iG’s largest shareholder is its CEO Gellert Jaszai, who is in the process of raising his stake from 32% to 40% under an agreement with business partner Lorinc Meszaros. The latter continues to indirectly hold 19.82% of 4iG shares through Konzum PE Private Equity Fund and 9.95% through Opus Global.
T-Systems Hungary posted 2018 turnover of HUF114.2 billion (USD393 million), compared to 4iG s annual figure of HUF14.0 billion.