Pelephone Acquires Wi-Com for NIS 265 Million
Translated & summarized from Ynet by baba
Pelephone has agreed to acquire Wi-Com for approximately NIS 265 million, a deal that will add over 300,000 customers and a 3% market share to Pelephone's existing base. The acquisition, pending regulatory approval, is expected to boost Pelephone's EBITDA by up to NIS 100 million long-term. Pelephone, Israel's third-largest mobile operator, aims to enhance its network and service capabilities through this strategic move.
The story in 5 lines · by baba
- Pelephone will acquire Wi-Com for approximately NIS 265 million, adding over 300,000 customers.
- The deal is subject to approval from the Ministry of Communications and the Commissioner of Competition.
- Wi-Com currently holds a 3% market share and uses Cellcom's antenna system until 2032.
- Pelephone expects the acquisition to positively impact its EBITDA by up to NIS 100 million long-term.
- Pelephone is Israel's third-largest mobile operator with over 2.7 million subscribers.
Pelephone announced Monday it has signed an agreement to acquire the cellular company Wi-Com for approximately NIS 265 million. Wi-Com, controlled by Yariv Lerner and KliMark Fund, serves over 300,000 customers and holds about a 3% market share. The deal follows months of due diligence and negotiations between the parties.
Completion of the acquisition is contingent upon approval from the Ministry of Communications and the Commissioner of Competition. Pelephone will also need to reach an agreement regarding compensation with Cellcom, as Wi-Com currently uses Cellcom's antenna system under a contract extending to 2032.
Pelephone stated the acquisition is a significant step in its growth strategy, expected to expand its customer base and enhance its capabilities in network development, service, and innovation. The company projects a short-term positive impact of NIS 50 million on its EBITDA, rising to NIS 100 million in the long term.
Pelephone is the third-largest mobile operator in Israel, with over 2.7 million subscribers, including more than 1.6 million 5G users. It was also the first company in Israel to operate an independent 5G network core.
Ilan Sigal, CEO of Pelephone, commented, "We are now working to obtain the necessary regulatory approvals from the Ministry of Communications and the Commissioner of Competition. The cellular market is investment-intensive, and completing the deal will allow us to continue leading investment in Israel's advanced communication infrastructures, which are national infrastructures. We believe it will strengthen competition in network quality, service, and innovation."
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