The Russian operator has agreed to purchase a 75% stake, minus one share, in Akado Holding, the parent company of Akado Telecom
This week sees the Russian telecoms market undertake considerable consolidation, with the dominant independent telecoms operator in Moscow, Akado, being majority purchased by rival ER-Telecom.
ER-Telecom and Rostec have reportedly created a new joint venture, ‘M-Com’, specifically for the purpose of making this acquisition, taking a 75% stake, minus one share, in the Akado. The remaining 25% stake, plus one share, is held by AVK investments.
The financial details of the deal were not revealed, but
According to ER-Telecom, Rostec, and AVK, the trio intend to collaborate and make use of Akado’s assets to develop a platform for digital services, including 5G, the IoT, smart city systems, video analytics, and data centres.
“This is an alliance of strong players, in which the competencies of our companies have synergies. This set-up opens new opportunities for the creation and implementation of domestic technological solutions in various fields: from internet services for the mass consumer to building a large-scale ICT infrastructure for private, municipal and government organisations,” explained Sergey Chemezov, head of Rostec. “For Rostec, as a developer and manufacturer of IT and telecom equipment, this is a promising project.”
Akado Telecom currently offers a range of services to its corporate, government, and private customers via its fibre network, including digital TV, online cinemas, data transmission services, corporate networks, information protection, video surveillance, and website hosting. It also operates a Tier III data centre in Moscow itself.
Akado Telecom reportedly serves around 300,000 subscribers.
ER-Telecom has been of something of an acquisition spree in the last year. In August 2021, the operator acquired 100% of Avantel Group, one of the largest alternative network operators in Russia, with infrastructure assets in Moscow and Siberia. Looking back yet further, in February 2021, the company also acquired 100% of Lipetsk-based regional operator Telemir, a move which reportedly added around 50,000 customers to their subscriber base.