Digicel, the Caribbean mobile operator founded by telecoms entrepreneur Denis O'Brien, plans to buy a rival in the region to expand into five new states.
The firm said yesterday it had agreed to buy Cingular Wireless's operations in the Caribbean in a transaction, which could be worth more than $20 million (€16.49 million).
Digicel, which has invested $600 million in the region since it was founded in 2001, will expand into Bermuda, Anguilla, St Kitts and Nevis, Antigua and Barbuda, and Dominica, if the deal is passed by the regulators.
Digicel said it expected the deal with Cingular Wireless to close within four to six months.
Cingular Wireless is a joint venture between SBC Communications and BellSouth Corporation. Digicel has also agreed roaming rates with Cingluar Wireless, which has 50 million subscribers across the US.
Cingular Wireless is selling all its properties, networks and licenses in the Caribbean market following its acquisition last year of AT & T Wireless. The firm has 70,000 subscribers in the Caribbean, who will all transfer to Digicel if the deal is accepted by each national regulators.
The value of the acquisition was not disclosed but analysts said the transaction could be worth more than $20 million.
"Digicel is delighted to have reached this agreement with Cingular because it presents a unique opportunity to acquire a geographic portfolio of interests," said Mr O'Brien in a statement.
In March, Digicel announced that it had received €408 million in funding from Citigroup, Bank of Ireland and AIB. Mr O'Brien has also been linked to a possible takeover of Meteor, the Republic's third operator.
