4iG and DIGI Group’s Romanian subsidiary (RCS & RDS) have concluded the sale and purchase agreement for the sale of DIGI group’s Hungarian operations for a transaction value of EUR 625m.
On November 29th, 2021, DIGI Group’s Romanian subsidiary RCS & RDS and 4iG (one of the leading companies of the Hungarian IT and ICT market) have concluded the sale and purchase agreement regarding the acquisition of Digi Hungary and its subsidiaries.
The parties’ intention to enter into the sale and purchase agreement was initially announced on 29 March 2021.
This transaction involves the acquisition by 4iG Plc of a 100% stake held by RCS & RDS in Hungary’s leading telecommunications and media service group, as well as the assignment of all debts of Digi Hungary and its subsidiaries to RCS & RDS, for a transaction value of EUR 625m.
Digi Hungary is a leading telecommunications service provider in Hungary, with 23 years of experience and a broad service portfolio covering table TV, fixed internet and data, mobile communications services, fixed-line telephony, and Direct To Home (DTH) services. It serves more than 1.1m subscribers nationwide and has over 2.5m Revenue Generating Units (RGUs) as of December 31st, 2020.
As a reminder, in 2020, DIGI Group’s consolidated sales revenue in Hungary was EUR 200m and its adjusted EBITDA reached EUR 54m, meaning the transaction will be made at 11.6x of FY20’s EBITDA. DIGI Group is currently traded at 4.2x 2020 EBITDA.
