Local IT provider 4iG acquires operator’s enterprise unit in bid to become a major regional player in 2-3 years
Magyar Telekom has struck a deal to sell T-Systems Hungary to local IT services firm 4iG, it emerged this week.
The deal covers T-Systems’ large enterprise and public sector operations; Magyar Telekom will retain the SME side of the business. Once the transaction closes, 4iG and Telekom will establish a long-term partnership, given T-Systems will continue to resell services from Magyar Telekom.
"The accelerated digitalisation of the economy represents a unique opportunity for 4iG. The objective of the company is to become a major corporation of the IT sector in this dynamically evolving market in Hungary, and within 2-3 years, in the region," said Gellért Jászai, CEO of 4iG. "T-Systems Hungary is one of the most important milestones in achieving our growth objectives."
Magyar Telekom said T-Systems’ continued further growth will be better served by a new parent.
"We are proud of T-Systems, which – with its 1,600-strong own workforce and thousands of people at partner companies – is a leading info-communications provider in the country and a transformation partner of several corporations and institutions," said Tibor Rékasi, CEO of Magyar Telekom.
"The purpose of Magyar Telekom remains the same: to always provide our customers with the best quality, integrated services, on the best network,".he added.
Financial terms were not disclosed. Magyar Telekom and 4iG aim to complete the deal later this year, subject to due diligence and regulatory approval.