Having announced a preliminary agreement in June, Hungary-based IT and ICT company 4iG has now confirmed that it is to buy Israeli satellite operator Spacecom.
4iG has agreed to buy a 51 percent stake in the company for $68 million through a private shares placement.
The deal values Spacecom at above $124 million and represents a 50 percent premium over the average $2.6 price per share from the last six months trading average on the Tel Aviv Stock Exchange.
Completion of the transaction is conditional on approval by Spacecom’s shareholders as well as regulatory approvals – including Israel’s Ministry of Communications – and approvals by other third parties currently contracted with Spacecom.
Spacecom CEO Dan Zajicek stated that the deal was a true testament of 4iG’s trust in Spacecom. This includes implementing the company’s strategic plans to evolve from being a provider of satellite capacity to a communication services provider offering managed services, end-to-end services, and provision of advanced solutions in the communication value chain such as turnkey projects, planning, deployment, and operation of satellite communication networks.
Completion of the transaction will potentially strengthen Spacecom’s operations in Eastern and Central Europe and will enable additional synergies with companies within the 4iG Group.
Spacecom is a leading global fixed-satellite operator and satellite service provider, offering tailored end-to-end communication solutions to the media and broadband industries. Operating the advanced AMOS satellite fleet, Spacecom provides broadcast and broadband satellite services with European, Pan-African, Middle Eastern and Asian coverage and cross-region connectivity.
Spacecom’s partners include a variety of leading broadcasters and satellite service providers throughout Europe, the Middle East, Asia and Africa.
4iG is a dominant player in the Hungarian IT and ICT markets, with a presence in the field of industry-specific and non-industry-specific innovative technologies for over 25 years.
A provider of a wide range of solutions, 4iG has significant interests in satellite telecommunications, UAV technologies, integrated ERP and process management systems, as well as data-centre building and operation.
