Baltcom continues buying spree with Dautkom, Elektrons S

11 Sep 2020

Latvian triple-play cable/fibre broadband network operator Baltcom – part of the Bite Group – has continued its recent acquisition spree with a deal to purchase smaller rival Dautkom TV, which operates in the south-eastern city of Daugavpils, it announced on 9 September. Baltcom’s press release says that the buyout of Dautkom will expand its existing operations in Daugavpils – Latvia’s second largest city – and will lead to upgraded services for Dautkom’s residential and business customers.

Dautkom – currently owned by the Pankevich family – provides digital TV, telephony and high speed optical internet services supported by a 100km-plus underground fibre network in Daugavpils, posting annual revenues of EUR3.71 million (USD4.39 million) in 2019. According to TeleGeography’s GlobalComms Database, Dautkom is Latvia’s fourth largest fixed broadband operator by subscribers, whilst buyer Baltcom is in second market place behind sector leader Tet (formerly Lattelecom).

Baltcom signed a purchase agreement of undisclosed value for Dautkom on 12 August, but the transaction requires permission from the Competition Council (Konkurences Padome, KP), which began a review of the deal on 7 September, a process which could take up to four months.

Separately, Baltcom announced last week that it completed the 100% takeover of a smaller triple-play ISP Elektrons S, which serves the beach resort city of Jurmala, expanding Baltcom’s existing operations in the area. Modernisation of the acquired network is planned ‘in the near future’ to provide symmetrical 1Gbps fibre speeds to ‘the majority’ of Elektrons S customers alongside a wider range of interactive TV services, Baltcom stated, adding that Elektrons S had annual revenues of EUR499,000 in 2019. Baltcom’s purchase agreement for Elektrons S – of undisclosed value – entered into force on 31 August 2020. A month earlier Baltcom completed the buyout of Riga-based triple-play operator MITS LV and its subsidiary Esteria79.

Baltcom has been wholly owned by the country’s third largest mobile operator Bite Latvia since February 2020.

Latvia, Baltcom, Bite Latvia, Dautkom