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United Group agrees to acquire Bulgaria's Vivacom

United Group agrees to acquire Bulgaria's Vivacom Author: Vivacom. License: All rights reserved.

SOFIA (Bulgaria), November 7 (SeeNews) - BC Partners-owned United Group, a Dutch-based telecommunications and media company operating in Southeast Europe, has agreed to acquire Vivacom, the largest telecoms operator in Bulgaria, Vivacom said on Thursday.

"The acquisition will accelerate United Group’s growth, expand its geographic reach and cement its position as the industry leader in the region," Vivacom said in a statement.

The price of the transaction was not disclosed.

The transaction is expected to close in the second quarter of 2020, following receipt of applicable antitrust approvals. The acquisition will be financed through a combination of new debt and cash on hand at United Group, the statement reads.

“Vivacom is a well-run company with strong management and I am excited at the opportunities we have to build an even stronger business. Bulgaria is an attractive market and this acquisition will enable us to diversify the Group further," Victoriya Boklag, CEO of Amsterdam-headquartered United Group, said.

United Group already operates in six countries in the region.

Vivacom provides services to over 1.8 million unique customers.

Vivacom welcomes as new shareholders one of the most successful global investors with significant presence in Europe and North-America, BC Partners, the chairman of Vivacom's supervisory board, Spas Roussev said, adding that the telco will play a big role in the future development of United Group.

Vivacom is the brand name under which the Bulgarian Telecommunications Company (BTC) operates. BTC's current owner, a consortium led by Bulgarian businessman Spas Roussev and comprising various minority investors, including VTC Capital and Luxembourg-based Viva Telekom, acquired the telecommunications company in a 330 million euro ($364 million) deal concluded in August 2016.

Vivacom competes with A1 Bulgaria, a unit of A1 Telekom Austria, and Telenor Bulgaria, a unit of Czech-owned PPF Group.

($=0.9055 euro)