RIO Media a.s. is a new member of the KAPRAIN group
In Autumn 2017, KAPRAIN’s technology portfolio grows thanks to the new acquisition of RIO Media, the third largest provider of Internet connectivity and digital TV in the Czech Republic. With this acquisition, we successfully follow the previous one, which was Nej.cz, and benefit from our experience in the Telco business. The future merging of these two companies will create the Czech Republic’s second largest cable TV provider and one of the key internet service providers operating advanced infrastructure.
Over 100 thousand households will have a new provider for high-speed broadband internet and digital TV. KAPRAIN Industrial Holding purchased RIO Media.
ARGUS Capital has agreed to sell its Czech high-speed broadband internet business RIO Media a.s. to KAPRAIN Industrial Holding. RIO Media is the third largest provider of high-speed broadband internet and digital television in the Czech Republic. With the acquisition, KAPRAIN will follow up its last year’s purchase of Nej.cz and more than double the number of its customers.
Daniel Zach, ARGUS Capital representative, added: „We established RIO Media in 2008 with the goal to gradually consolidate the fragmented internet service providers market in the Czech Republic and create an ideal platform for entry to this growing market for the next owner of the company. With the help of our partners and management team led by Tomas Chadzivasilis, we succeeded in creating a leading company on the high-speed broadband internet and digital television market and in offering our customers the best possible services with the use of our wide optic fiber network covering more than 30 cities. We are glad that we were a part of this successful investment and that the new owner of the company is a group which is already active on this market and which intends to further develop the company.”
„By acquiring RIO Media we confirm our interest in growing our presence on the telecommunications market. Future combination of Nej.cz and RIO Media will create the second largest provider of cable television and one of leading providers of broadband internet services. We will serve more than 200 000 households,” stated in his reaction to the transaction the owner or KAPRAIN group Karel Pražák. “Due to growing number of closed transactions, KAPRAIN is becoming an important player on this market which brings us further opportunities which we are seriously considering,“ he added.
CEO of Nej.cz, Jaroslav Hanyk, welcomes the signing of the transaction: „Nej.cz welcomes the interest in further investments in the telecommunications sector of our owner KAPRAIN group. We expect narrow cooperation of both companies. Our customers should gradually receive a mix of the best services from the offering of RIO Media and Nej.cz both in the cable TV and internet services.“
Given the size of the market shares of RIO Media and Nej.cz, the transaction is subject to approval of the Czech Antimonopoly Office.
CORPIN together with its partner Rothschild & Co. acted as financial advisors of the seller while Dentons was the legal advisor.