Investor Releases

Budapest, May 29, 2009 10:45

Magyar Telekom (Reuters: NYSE: MTA.N, BÉT: MTEL.BU and Bloomberg: NYSE: MTAUS, BÉT: MTELEKOM HB), the leading Hungarian telecommunications service provider, announces that it has signed an agreement to buy a 100% equity stake in ISH.

On 29 May, 2009 Magyar Telekom signed a share purchase agreement to acquire a 100% equity stake in International System House Kft (ISH). The agreed enterprise value is HUF 2.9 billion, from which the value of the net debt will be subtracted at the closing of the transaction. Depending on 2009 and 2010 financial performance, further earn-out payments could be made.

ISH specializes in developing, installing and operating integrated healthcare IT services. With market leadership in its segment, the company achieved nearly HUF 2.9 billion of revenues in 2008 and EBITDA of HUF 1 billion. With this acquisition Magyar Telekom aims to further strengthen its position in the IT services market.

The closing of the transaction, which is anticipated to be in the third quarter of 2009, is also subject to Competition Authority approval.

 

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