We advised telecommunications company Bitė throughout the Mezon acquisition deal. The acquisition was completed at the end of December in 2020, after Competition Council and the Communications Regulatory Authority granted their approval, and after Bitė made certain commitments.
UAB Mezon, a subsidiary of Bitė Lietuva, acquired the business operating under the Mezon brand from the Lithuanian Radio and Television Centre (Telecentras). The business encompasses internet, data transmission and digital television services in Lithuania. The value of the transaction is over EUR 20 million.
Important transaction for the Lithuanian telecommunications market
According to Sorainen partner Dr Daivis Švirinas, this transaction is an important event for the entire telecommunications market in Lithuania. “By implementing this transaction, the state has finally acknowledged that state-controlled companies should not do business in the telecommunications market, where private equity firms can operate well. This transaction will undoubtedly contribute to increasing competition in the fixed internet services market and will benefit consumers,” comments Daivis.
Sorainen managing partner Laimonas Skibarka agrees with him: “We are glad that this transaction, which lasted almost a year and a half, has been successfully completed and that the Lithuanian telecommunications market is entering a new stage of maturity and growing competition.”
Mezon’s business to be integrated into Bitė Group
About 150 engineers, and commerce, finance and customer service specialists, as well as the Mezon brand, customers, network, information systems and frequencies are being transferred to Bitė Group.
Mezon internet and data transmission services make up approx 2% of the total Lithuanian telecommunications market. Around 97,000 customers use Mezon internet services, and over 11,000 customers watch Mezon TV, which is broadcast via the wireless internet network.
Our services and team
Our team advised the client on all transaction-related matters, including representation during the sales process, legal and tax due diligence, negotiation of transaction documents, and the preparation of reports for the Competition Council, the Communications Regulatory Authority and the Commission for Coordinating the Protection of Objects Important for National Security. Our team consisted of partners Laimonas Skibarka, Daivis Švirinas and Saulė Dagilytė; counsel Stasys Drazdauskas; senior associates Jonas Kiauleikis, Vytautas Sabalys, Monika Mališauskaitė-Vaupšienė and Rasa Mikutienė; associates Dobilė Minkutė, Paulius Mockevičius; and others.