Digi completes sale of Hungarian unit

Romania-based international service provider Digi has completed the sale of its Hungarian subsidiary to local information technology and service provider outfit 4iG.

Serghei Bulgac

The agreement, which saw 4iG acquire Digi Hungary for €625 million, will give the former a company with about 1.1 million subscribers and 2.5 million revenue-generating units. Digi has a 283.3% share of the local pay TV market, a 23% share of the internet market and a 22% share of the fixed phone market. It also has around 173,000 mobile customers.

Digi gene3rated revenues of HUF70 billion (€200 million) and EBITDA of HUF19 billion in 2020.

Digi and 4iG completed their agreement for the sale of the unit at the end of November.

The sale is part of a new focus by Digi on its core market and new markets in western Europe – notably Spain, where it has emerged as a significant market disruptor.

4iG has said that the purchase of Digi is in line with a stated strategic ambition to emerge as a major player in the telecom markets in the western Balkans as well as the second-largest player in its home market.

“After 23 years of continuous development, Digi hands over to the operator 4iG a competitive business, with exceptional results, whose impact on the telecommunications market will be felt many years from now. We thank our customers for the trust they have placed in us for so long – without them nothing could have been built. We also thank all our colleagues in Hungary for their professionalism, perseverance, loyalty and for their contribution to the evolution of the company,” said Serghei Bulgac , CEO of Digi Communications.

“Thanks to these qualities, we have built together a business that we are proud of, that has successfully fulfilled its growth objectives and that has offered its customers quality, accessible services, based on state-of-the-art technology. We wish them and their colleagues at 4iG continued success and hope to hear a lot of news in the future that will make us proud of the continuation of the story we started.”