On June 29th, 2015 Telekom Austria Group announced that its Bulgarian subsidiary Mobiltel has come to an agreement for the acquisition of 100% of the cable operator blizoo Bulgaria with the current owner – EQT V.
“The acquisition of blizoo is another step forward for the further development of the challenging Bulgarian market. Together with Mtel, we see an enormous potential in the rapidly growing fixed line segment, which is going to be ultimately beneficial for our Bulgarian clients”, commented Alejandro Plater, CEO Telekom Austria Group since August 1st, 2015.
“This move reveals a very wide range of opportunities for Mobiltel and strengthens our fixed line portfolio. We are looking forward to a positive decision from the authorities for the acquisition, because the agreement is going to contribute to a better market environment and higher investments in the Bulgarian economy”, said Thanasis Katsiroumpas, CEO Mobiltel Bulgaria.
“The majority of our customers already take advantage of blizoo’s multi-play offering, but in combination with Mobiltel, we will be able to offer the 4play service spectrum to our customer base and this also offers great opportunities for further growth”, commented Harald Rosch, CEO blizoo Bulgaria.
blizoo Bulgaria has an 8% share in the fixed broadband market and an 11% share in the TV market (Telekom Austria Group estimate). Furthermore, the company currently has approximately 373,000 subscribers which obtain fixed voice, broadband and TV products via DOCSIS 3 technology. In total blizoo Bulgaria covers 1.3 million households.
In 2014 revenues and EBITDA amounted to approximately EUR 47 million and EUR 19 million respectively. As agreed between the buyer and seller, details regarding the purchase price will not be released.
Telekom Austria Group will finance the transaction through its own existent cash flows. The finalization of the acquisition is expected to happen during the fourth quarter of 2015. The transaction is subject to merger control clearance.