Today Telekom Austria Group announces that its Bulgarian subsidiary Mobiltel has agreed with the seller EQT V to acquire 100% of blizoo Bulgaria.

"The acquisition of blizoo is another step to further develop our challenging Bulgarian market. We see a huge growth potential together with Mobiltel in the strongly rising fixed-line segment, which will be ultimately beneficial for our Bulgarian customers," pointed out Alejandro Plater, CEO Telekom Austria Group as of 1st of August 2015.

"This move opens a broad range of exciting opportunities for Mobiltel and strengthens our fixed-line portfolio. We are looking forward to a positive decision of the authorities as the acquisition would contribute to a better market environment and higher investments in the Bulgarian economy," says Thanasis Katsiroumpas, CEO Mobiltel Bulgaria.

"The majority of our customers take advantage of blizoo's multi-play offering already today; but in combination with Mobiltel, we will be able to offer the full four-play service spectrum to our customer base and this also offers great opportunities for further growth," stresses Harald Rösch, CEO blizoo Bulgaria.

blizoo Bulgaria is the second largest fixed-line operator in Bulgaria and 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 mn households.

In 2014 revenues and EBITDA amounted to approximately EUR 47 mn and EUR 19 mn respectively. As agreed between the parties, details regarding the purchase price will not be released.

Telekom Austria Group will finance the transaction via existing cash flow. The closing is expected for Q4 2015. The transaction is subject to merger control clearance.

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