MegaFon on Friday announced that it has completed the acquisition of fixed-line operator GARS, a move it hopes will help it to build its position in the B2B market in Moscow.
The Russian operator’s board approved the deal for 100% of GARS in June. The companies did not disclose the value of the transaction.
"With this acquisition we plan to further expand our footprint in [the] B2B wireline market by combining the expertise and experience of both MegaFon and GARS," said MegaFon CEO Ivan Tavrin.
"We believe that this transaction forms an ideal combination of businesses allowing us to enhance our value proposition to MegaFon’s and GARS existing and future customers," he said.
GARS is a local exchange carrier that provides a range of fixed telecom services to business centres in Moscow and the North-West regions, MegaFon said. It added that the acquisition fits with its strategy of developing a second core business.
"We greatly appreciate MegaFon’s vote of confidence and endorsement of GARS achievements as a leading wireline telecom service provider in the Moscow commercial real estate market," said managing director of GARS Pavel Gorenkov.
"I am confident that marrying GARS’ experience and expertise and MegaFon’s resources and platform will accelerate our success and market leadership," Gorenkov said.
