Mobiltel acquired Megalan and Spectrum Net

Telecom Austria, the owner of M-tel, acquired Megalan and Spectrum Net, two of the biggest internet suppliers in the country. Earlier this year Spectrum Net has purchased 100% of Orbitel and together with Megalan the two companies have a market share of 10% in Bulgaria. Telecom Austria evaluates the two companies at EUR 83 mln and paid for the acquisition EUR 72 mln. Part of the sum, EUR 14.5 mln, will be transferred in 2011 depending on the performance of the companies on the market. With this deal M-tel increased substantially its market share on the market for fixed internet and fixed telephony, dominated by Vivacom.

 Megalan and Spectrum Net will maintain their trade marks and the management and they will also continue to operate separately for about 18 months. Despite that products of the M-tel brand will be offered to the customers this year already.