Quick View: Passive Infrastructure Assets Of Most Value To 4iG In DiGi Hungaria Buy

摘要

The Latest: Romania-based RCS & RDS (trading as DiGi) has agreed to sell its Hungarian unit to 4iG for an undisclosed sum. The business does not obviously fit 4iG's established enterprise software and technology investment strategy, raising questions over its long-term plans for DiGi Hungaria. Implications: The consumer-orientated mass-market broadband and pay-TV business of DiGi is a very different play for 4iG, which has typically concentrated on software and digital applications for industry and enterprises. We believe the acquisition is opportunistic rather than additive to 4iG's long-term investment strategy; increased cash flow arising from the inclusion of DiGi may help finance the group's research and development activities into software supporting automation and remote system management, cybersecurity and social 'e-services' (e-healthcare, e-transport, food safety etc).