Investor Releases
Magyar Telekom acquires systems integration company
Budapest, February 9, 2009
Magyar Telekom (Reuters: NYSE: MTA.N, BÉT: MTEL.BU and Bloomberg: NYSE: MTAUS, BÉT: MTELEKOM HB), the leading Hungarian telecommunications service provider, announces thatit has signed an agreement to buy a 100% equity stake in KFKI Direkt Kft.
Magyar Telekom signed a share purchase agreement to acquire 100% of KFKI Direkt Kft. on 9 February, 2009. The purchase price is HUF 300 million plus an earn-out payment depending on the 2009 financial performance of up to a maximum of HUF 100 million. KFKI Direkt is a systems integration and infrastructure support company with specialist expertise in these areas. Based on the preliminary financial statements, the company achieved nearly HUF 1.5 billion revenues and exceeded HUF 200 million EBITDA in 2008. KFKI Direkt de-merged from KFKI in 1995, while the remainder of the KFKI Group was acquired by Magyar Telekom in 2006. With this acquisition Magyar Telekom aims to further strengthen its position in the IT service market.
The closing of the transaction, which is anticipated to be in the second
quarter of 2009, is subject to Competition Authority approval.
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