Orange has agreed to acquire 54 percent stake in fixed telecoms operator Telekom Romania Communications (TKR), for €268 million – as part of its convergent communication strategy.

The transaction, which reflects an enterprise value of €497 million for TKR, will significantly accelerate Orange’s strategy to become the preferred choice of customers for convergent services in the Romanian market.

TKR is Romania’s second largest player in fixed telecoms with revenues of €622 million reported in 2019. TKR’s owned network infrastructure provides fixed voice, broadband and paytv services to 5 million customers and its approximately 90,000 km fibre network connects some 3 million households.

TKR also provides convergent services to approximately 881000 fixed-mobile convergent subscribers via an MVNO contract with Telekom Romania Mobile. These customers will migrate to Orange Romania’s network.

Orange Romania reported €1.1 billion revenues in 2019 and is the number one mobile operator in Romania.

This transaction will generate significant synergies deriving mainly from the cross-selling of services to existing customers, as well as the optimisation of the network including economies of scale and scope.

The closing of the transaction is subject to customary condition precedents, notably antitrust clearance by the European Commission and other relevant authorities and is expected to be completed within the second half of 2021.

Mari-Noelle Jego-Laveissiere, deputy CEO, in charge of Orange in Europe, said: “This acquisition is an important step to accelerate our convergence strategy in Europe.”

Liudmila Climoc, CEO of Orange Romania, said: “This is a significant milestone for the Romanian telecom market that will enhance its attractiveness both in terms of converged telecoms services and high quality infrastructure, while increasing competition.”