Cellphone giant Pelephone signs $84 million deal to buy mobile network provider Wecom

Cellphone giant Pelephone has signed an agreement to buy mobile network provider Wecom in a deal worth NIS 265 million ($84 million).

Bezeq’s Pelephone mobile phone unit says completion of the deal is subject to approval from the Communications Ministry and Israel’s competition watchdog.

The deal, if approved by regulators, would add about 300,000 Wecom mobile subscribers to Pelephone’s 2.7 million subscriber base, which includes more than 1.6 million 5G subscribers.

Pelephone, managed by CEO Ilan Sigal, describes the acquisition as a significant step in the provider’s growth strategy, saying it will expand its customer base and further develop its network and service.

Potential synergies are estimated to add about NIS 50 million to the EBITDA (earnings before interest, taxes, depreciation, and amortization) of Pelephone’s parent company Bezeq in the short term and about NIS 100 million in the long term, the company says.