Cellcom in Talks to Acquire Control of iDigital Parent Company
Translated & summarized from Calcalist by baba
Cellcom is in preliminary talks to acquire control of Icon Group, the parent company of the iDigital retail chain, from the Sky investment fund. Icon Group, a major distributor and retailer of Apple products, reported a significant profit increase in early 2026. This potential acquisition marks a strategic shift for Cellcom towards growth and expansion, leveraging its existing strong position in device sales through its Dynamica chain. The deal's completion is subject to regulatory approval.
The story in 6 lines · by baba
- Cellcom is in preliminary talks to acquire control of Icon Group, owner of the iDigital retail chain.
- The Sky investment fund is seeking 210 million shekels for its controlling stake in Icon Group.
- Icon Group reported a 78.5% profit increase in early 2026, reaching 22.4 million shekels.
- The acquisition aligns with Cellcom CEO Eli Adadi's strategy to shift towards growth and expansion.
- Cellcom's Dynamica chain is already Israel's largest mobile carrier in end-device sales.
- The deal requires approval from the Competition Authority.
Cellcom is reportedly in preliminary negotiations to acquire controlling interest in Icon Group, the parent company of the iDigital retail chain. Cellcom, which operates the Dynamica chain with approximately 60 stores selling mobile products, is looking to expand its presence in the consumer electronics market. The Sky investment fund, which currently holds a 42.5% stake in Icon Group valued at around 160 million shekels, is seeking 210 million shekels for its shares, a premium of over 30% on market value. Sky is reportedly exploring the sale of its controlling stake in Icon Group, which it acquired in 2017.
Icon Group, an official distributor and importer of Apple products in Israel, also operates a retail and distribution segment through its iDigital stores. The company reported a net profit of 22.4 million shekels for January-June 2026, a significant increase of 78.5% year-over-year, driven by a 20.6% rise in revenues to 860 million shekels. This growth occurred despite a promotional event that impacted customer traffic.
For Cellcom, this potential acquisition represents a strategic shift under CEO Eli Adadi. After leading a deep efficiency drive and improving the company's financial performance, Adadi is now focusing on growth and expansion, potentially through acquisitions. Acquiring Icon Group would be a natural fit for Cellcom, as its Dynamica chain is already the largest mobile carrier in terms of end-device sales in Israel, a significant profit driver. Adadi has extensive experience in this sector, having previously served as CEO of Dynamica and fostering strong ties with Apple.
The deal, if finalized, would require approval from the Competition Authority due to the size of both companies. The market value of Icon Group was recently cited at 437 million shekels, though it has since decreased. Cellcom, with a market capitalization of 5.7 billion shekels, has experienced 11 consecutive quarters of profit growth.
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