Telemach / EON

In 2000, MidEuropa acquired Telemach, the leading Slovenian cable TV and broadband operator, following a direct approach to the corporate parent. MidEuropa identified an opportunity to consolidate the domestic market owing to Telemach’s first-mover advantage and potential to roll out new services.

During the five-year partnership, MidEuropa supported an extensive buy-and-build consolidation of the fragmented market. Telemach developed from a small cable operator with less than 20,000 subscribers into Slovenia’s undisputed market leader with more than 100,000 video subscribers and operating margins in excess of 45%). The company was merged with EON, an Internet company and original shareholder in Telemach, before being sold to UnitedGlobalCom (UGC) in 2004.

Partnership highlights:

• Add-on acquisitions identified, undertaken and successfully integrated into one streamlined company
• Upgraded its network and grew subscriber numbers from 20,000 to over 100,000
• Introduced new services such as high-speed Internet access and digital video services, thereby changing the public’s perception of cable services from a utility-type operator to an innovative company providing a wide range of value-added products and services

Value creation:

• Acquisitive Growth
• Operational Excellence
• Organic Growth