Romanian telecom group Digi expands operations in Portugal with EUR 150 mln acquisition

Romania telecom group Digi Communications (BVB: DIGI) has reached an agreement with Portuguese company LORCA for the acquisition of Portuguese telecom operator Cabonitel. Digi will take over 100% of Cabointel’s shares at a valuation of EUR 150 million, the group announced in a BVB report.

“The Transaction perimeter includes Nowo Communications, Portugal’s fourth biggest mobile and fixed telecom operator (entirely owned by Cabonitel). Nowo has ca. 270 thousand mobile telephony clients and ca. 130 thousand fixed telecommunications clients. Nowo also holds spectrum licenses in 1800 Mhz, 2600 MHz and 3600 MHz frequency bands,” reads Digi’s report.

The completion of the transaction is subject to competition clearance.

This acquisition marks Digi’s expansion into Portugal, where the Romanian group hasn’t carried out any revenue-generating activities so far. The group had bought radio frequencies in Portugal at the mobile spectrum auction from 2021 and is in process of developing fixed and mobile networks in the country.

Digi is an integrated provider of telecommunication services in Romania and Spain and a Mobile Virtual Network Operator (MVNO) in Italy. The group also expanded into Belgium in 2023.

The group had a consolidated turnover of EUR 1.7 billion in 2023, up 13% versus the previous year.

(Photo source: Digi)