Telia Company inks deal to sell Telia Latvia to Tet
Telia Company has entered into an agreement to sell Telia Latvija SIA (Telia Latvia) to Tet SIA (Tet) for an enterprise value of €10.75 million in cash.
The price represents a FY 2021 Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) multiple of 10x.
As a leading B2B telecom services provider, Telia Latvia has 46 employees and offers large businesses across Latvia solutions across telecoms services, cloud services, data centre solutions and media solutions.
“We have run a competitive auction process for the sale of Telia Latvia during the autumn where a significant number of potential buyers were invited," said Andreas Ekström, head of Latvia at Telia Company.
"We are pleased that we have now reached an agreement with Tet who with this acquisition will strengthen its positions withing the enterprise segment with Telia Latvia’s network and technology assets and highly skilled employees. Latvia is a highly interesting ICT market and Telia Company remain committed to continue contributing to the digitalization of Latvia with our engagement in Tet and LMT.”
Tet is a technology and entertainment operator in Latvia, delivering ICT and pay-TV services, as well as electricity and other services.
The company is owned by the Republic of Latvia (51%) through SIA Publisko aktīvu pārvaldītājs Possessor and Tilts Communications A/S (49%), a wholly owned Telia Company entity. In addition, Telia Company also owns 60.3% in Latvian mobile operator LMT.
“Tet’s strategy is to accelerate growth via acquisitions, and we are very excited about the opportunity to acquire Telia Latvia," said Uldis Tatarcuks, CEO of Tet.
"We believe our businesses complement each other, especially within our data centre and transmission business. We look forward to welcome Telia Latvia and its employees to Tet and together develop the business to the benefit of our customers, employees and the Latvian society at large”.
The deal is due to close in the second quarter of 2022, subject to customary regulatory approvals.