Cellcom in Talks to Acquire Apple Distributor iDigital for $130 Million
Translated & summarized from Ice by baba
Cellcom is in preliminary talks to acquire a controlling stake in Icon Group, the Israeli importer and distributor of Apple products and operator of the iDigital chain. The investment fund Sky, Icon Group's major shareholder, is seeking a NIS 500 million valuation, while the company's market value is around NIS 370 million. Icon Group faces a NIS 241 million class-action lawsuit regarding repair services. Cellcom has recently reported strong financial results.
The story in 5 lines · by baba
- Cellcom is in preliminary talks to acquire a controlling stake in Apple distributor Icon Group.
- Icon Group's major shareholder, Sky, is seeking a NIS 500 million valuation for the company.
- Icon Group operates the iDigital retail chain and is the official importer of Apple products in Israel.
- Icon Group is facing a NIS 241 million class-action lawsuit regarding customer repairs.
- Cellcom recently reported a 44% year-over-year increase in its second-quarter net profit.
Cellcom, a leading Israeli telecommunications company, is reportedly in preliminary negotiations to acquire a controlling stake in Icon Group, the official importer and distributor of Apple products in Israel and operator of the iDigital retail chain. The talks are being led by Cellcom CEO Eli Adadi. Sky, an investment fund that holds a 42.5% stake in Icon Group, is seeking a valuation of NIS 500 million (approximately $130 million) for the company, significantly higher than its current market value of around NIS 370 million. Sky, managed by Zvi Yochman and Nir Dagan, acquired its controlling interest in Icon Group in 2017 for NIS 110 million and has been exploring a sale since August, following the maturation of its investment. Previous discussions with other interested parties, including Bandai Namco and electronics importers Rimag and Yishpar, did not advance to formal negotiations.
Icon Group operates in both retail through its iDigital chain and distribution of Apple products and other technology. In the first half of 2026, the company reported revenues of NIS 860 million and a net profit of NIS 22.4 million. For Cellcom, this potential acquisition would expand its presence in the end-device sector, complementing its existing Dynamica retail chain, which sells mobile devices, primarily Apple and Samsung. Cellcom itself has shown strong financial performance, with a net profit of NIS 92 million in the second quarter of 2026, a 44% increase year-over-year, and a net profit of NIS 164 million for the first half of the year. Free cash flow reached NIS 251 million in the first half, and net financial debt decreased to approximately NIS 1.1 billion.
However, Icon Group is also facing a NIS 241 million class-action lawsuit approved for litigation by the Central District Court. The suit alleges that customers who submitted MacBooks and AirPods for repair did not receive their original replaced parts back, despite paying for new components. The companies maintain that the court dismissed most of the claims, that this is an interim decision, and that no damages have been proven or compensation awarded.
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