Invitel

 

MidEuropa backed Hungarian telco Invitel across two periods of the company’s growth. In May 2003 MidEuropa acquired Invitel alongside co-investor GMT Communications from Vivendi Telecom International for €325 million. Over the next 3.5 years, recurring EBITDA increased from €59 million in 2002 to €82 million in 2005. The business was sold in 2007 to Hungarian Telephone & Cable Corp for €470 million.

MidEuropa continued to maintain a relationship with management and  our asset knowledge and long-standing relationship helped us negotiate a complex transaction to acquire the business again on an exclusive basis in November 2009.  Over the years that followed, MidEuropa transformed Invitel from a fixed-line player to a diversified telecom operator with substantial wholesale data and business services exposure. This helped to ensure more stable cash flows as the decline in voice services was offset by growth in wholesale and business services. 

The business was sold in 2017 to financial buyer CEE China Infrastructure Fund. 

 

Partnership highlights:

• Acquired Hungary’s fourth-largest cable TV operator FiberNet in 2011 using proceeds from selling a non-core division
• Split the business operationally into residential and corporate divisions to improve accountability 
• Provided a video offering 
• Accelerated the roll out of fibre to enhance the competitiveness of the residential product offering

 

Value creation:

• Operational Excellence