T-Systems Hungary to Be Acquired by 4iG

Magyar Telekom, the leading Hungarian telecommunications service provider, has announced that it has signed Heads of Terms with Hungarian company 4iG about the sale of its fully-owned subsidiary T-Systems Hungary, which offers a full range of ICT solutions.

Under the Heads of Terms, 4iG will purchase all the shares of T-Systems by the close of the transaction. Prior to the transaction being closed, the small and medium-size enterprise sales business of T-Systems will be carved out and will not be part of the deal.

The parties agreed on the purchase price and the main conditions of the transaction, however, the full details of the transaction, including the Heads of Terms, will only become binding upon the signing of the final sale and purchase agreement, which is subject to the due diligence of T-Systems and further negotiations between the parties, according to a statement by Magyar Telekom.

The parties will also enter into a long-term partnership agreement, under which T-Systems will continue to sell Magyar Telekom’s telecommunications services in the large enterprise and public segments. Furthermore, the parties have agreed that 4iG will have the right to use the T-Systems brand in Hungary during a three-year period following the closing of the deal. The finalization and closing of the transaction depend on the due diligence process, the progress of negotiations between the parties, the finalization of the contractual conditions, the signing of the legal documentation, and the receipt of required supervisory approvals. The closing of the transaction is expected to take place in 2019.

According to the Heads of Terms, at the closing of the transaction, 4iG will purchase the shares of T-Systems. Prior to transaction closing, the small and medium-size enterprise sales business of T-Systems will be carved out and will not be part of the transaction.

In the signed Heads of Terms, the parties agreed on the purchase price and the main conditions of the transaction, however, the full details of the transaction, including the Heads of Terms, will be binding upon the signing of the final sale and purchase agreement subject to the due diligence of T-Systems and the further negotiations between the Parties, a statement by Magyar Telekom said.

According to the Heads of Terms, after the closing of the transaction, the parties will enter into a long-term partnership agreement, under which T-Systems will continue to sell Magyar Telekom’s telecommunications services in the large enterprise and public segments. Furthermore, the parties have agreed that 4iG shall have the right to use the T-Systems brand in Hungary during a three-year period following the closing. The finalization and closing of the transaction depends on the due diligence process, the progress of discussions between the parties, the finalization of the contractual conditions, the signing of the legal documentation, and the receipt of requisite authority clearance(s). The closing of the transaction is expected to take place in 2019.