Orbitel with a new owner
17 November 2009
Spectrum Net acquires Orbitel from Magyar Telekom
The deal represents the first substantial step of consolidation of the alternative telecommunication business in Bulgaria
Sofia, 12th November 2009 – Magyar Telekom and Spectrum Net (“Spectrum Net” AD) have signed a share purchase agreement on Orbitel EAD. The deal amounts close to EUR 5 million and is subject to approval by the local Commission for Protection of Competition. Completion is expected in the beginning of 2010.
Spectrum Net and Orbitel emerged to be the logical partners in the competitive procedure of the deal, as the two biggest players on the local alternative telco market. Spectrum Net having 12 years of experience as internet based telecommunication company is steadily growing and seeking opportunities for further expansion. Both parties found the deal as the natural step forward and a chance to consolidate the alternative telco market.
After managing Orbitel for 3 years, Magyar Telekom has brought the company to international standards in operation and profitability. "Orbitel stays a stable self-financing company. Still, in order to continue growing the consolidation is the only solution for the alternative operators. We hope for the future the regulator will be more efficient in stimulating the competition on the market.” says Mr. Sándor Polányi, CEO of Orbitel.
The CEO and shareholder of Spectrum Net Mr. Theodor Zahov points out: “The deal with Orbitel met our strategic need for expansion in the right moment to grow and benefit from the natural synergy between the two companies. The acquisition represents our ambition to consolidate the alternative telco business in Bulgaria and to stand as the largest alternative operator on the local market.”
The process of integration of the two companies, both structural and cultural, will be main priority in the next months. The expectations are that joint resources, expertise and services will ensure a stronger market position and influence. Target and anticipated result of the integration process in 2010 is revenue of up to EUR 20 mln. and EUR 5 mln. EBITDA.
The synergy between the two biggest alternative telecoms is the first step towards consolidation of the sector and will bring inherent growth, incite the competition and improve services offer.