Direct One closes the acquisition of Netcity Telecom
Direct One S.A. has closed its acquisition of Netcity Telecom, the operator of the underground fiber optic infrastructure network of Bucharest from its former owners – UTI Netcity Investments BV and UTI Grup SA. The Netcity acquisition ends a process started in 2015 by Direct One, an independent and neutral provider of fiber optic infrastructure. The acquirer, part of Electrogrup group of companies, which is controlled by the Romanian entrepreneurs Teofil Mureșan and Simion Mureșan, operates a national inter-city network of fiber optics which exceeds 5,500 km and ensures long distance connectivity between cities.
“We are delighted that we can expand our investments in telecom infrastructure, a critical part of the country’s economic development. We intend to expand the Netcity network in ways which are economically viable so that this infrastructure can support the city’s development as well as future Smart City initiatives in Bucharest”, mentioned Marian Pantazescu, Chairman of Direct One Board of Directors.
Netcity Telecom, a neutral operator, will continue to exist as a stand-alone entity, being charged with designing, building and operating Netcity following the signing of a concession agreement with the Bucharest municipality.
“The shareholders have mandated us to assist in continuing the consolidation of shared infrastructure via acquisitions from other operators – such as fiber optics networks, telecom towers, and data centres in Romania and throughout the region”, said Tony Romani, leader of the M&A team assisting Direct One.
Debt financing for the transaction was provided by the Mandated Lead Arrangers Banca Comercială Română si BRD – Groupé Société Générale, assisted by lawyers from Clifford Chance Badea. Legal assistance for debt financing to buyers was provided by Țuca, Zbârcea și Asociații, while transaction structuring support was provided by PricewaterhouseCoopers.