America Movil Plans To Acquire Amisco NV To Expand In Southeast Europe

During trading hours on Monday; America Movil SAB de CV (NYSE:AMX)’s subsidiary Telekom Austria stated the plan of acquisition of Amisco NV, the holding entity of Amis Slovenia and Amis Croatia. Amis operates a fixed-line reseller in Slovenia (63,000 customers) and owns a fibre network in Croatia (23,000 customers).

In 2014, Amisco revenues amounted to €4 1 million, with approximately 80% stemming from Slovenia. The acquisition price was not declared, but we forecast €150 million at 8.0 times 2015 estimate Enterprise value/EBITDA.

Amis operates as a fixed-line reseller in Slovenia and owns a fibre network in Croatia. The companies offer internet, IPTV and telephony services to approximately 63,000 customers in Slovenia and approximately 23,000 customers in Croatia as of year-end 2014.

The acquisition of Amis is a further step in Telekom Austria Group’s convergence strategy. It allows Telekom Austria Group to develop its Slovenian operations from a mobile-only player into a fully converged operator. In addition, it strengthens the Group’s Croatian business, where it has been offering convergent services since 2011.

In 2014 Amisco revenues amounted to approximately EUR 41 million, with approximately 80% stemming from Slovenia.

Telekom Austria Group will finance the transaction via existing cashflow; the closing is expected for Q3 2015. The transaction is subject to merger control clearance.

About

Gavin Donnelly, MBA (from Columbia University, New York), is financial analyst and covers Services, Financial & REIT and Healthcare sectors. Prior joining Market Cash Cow, Gavin Donnelly worked with Cleveland Research. If you have a great story idea for Gavin Donnelly, you can write at [gavin.donnelly@marketcashcow.com ].

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