Millicom (Tigo) has signed a definitive agreement to acquire Telef贸nica's operations in Ecuador for USD 380 million, strengthening its South American presence. The acquisition provides entry into Ecuador's growing telecom market, characterized by a stable, dollarized economy with favorable macroeconomics. Ecuador, with a population of 18.5 million and improving fiscal metrics (deficit reduced from 3.5% to 1.4% of GDP), presents strong growth potential in both mobile (+1.4%) and fixed broadband (+3.6%) services. Telef贸nica Ecuador currently holds the second position in the mobile market. The deal aligns with Millicom's strategic expansion in Latin America and Telef贸nica's portfolio restructuring goals. The transaction remains subject to regulatory approvals and closing conditions.
Millicom (Tigo) ha firmato un accordo definitivo per acquisire le operazioni di Telef贸nica in Ecuador per 380 milioni di dollari, rafforzando la sua presenza in Sud America. L'acquisizione consente l'ingresso nel mercato telecom in crescita dell'Ecuador, caratterizzato da un'economia stabile e dollarizzata con condizioni macroeconomiche favorevoli. L'Ecuador, con una popolazione di 18,5 milioni e miglioramenti nei parametri fiscali (deficit ridotto dal 3,5% all'1,4% del PIL), offre un forte potenziale di crescita sia nei servizi mobili (+1,4%) sia nella banda larga fissa (+3,6%). Telef贸nica Ecuador detiene attualmente la seconda posizione nel mercato mobile. L'accordo 猫 in linea con l'espansione strategica di Millicom in America Latina e con gli obiettivi di ristrutturazione del portafoglio di Telef贸nica. La transazione 猫 soggetta all'approvazione delle autorit脿 regolatorie e al soddisfacimento delle condizioni di chiusura.
Millicom (Tigo) ha firmado un acuerdo definitivo para adquirir las operaciones de Telef贸nica en Ecuador por 380 millones de d贸lares, fortaleciendo su presencia en Sudam茅rica. La adquisici贸n permite la entrada al mercado de telecomunicaciones en crecimiento de Ecuador, caracterizado por una econom铆a estable y dolarizada con condiciones macroecon贸micas favorables. Ecuador, con una poblaci贸n de 18,5 millones y mejoras en los indicadores fiscales (d茅ficit reducido del 3,5% al 1,4% del PIB), presenta un fuerte potencial de crecimiento tanto en servicios m贸viles (+1,4%) como en banda ancha fija (+3,6%). Telef贸nica Ecuador ocupa actualmente la segunda posici贸n en el mercado m贸vil. El acuerdo est谩 alineado con la expansi贸n estrat茅gica de Millicom en Am茅rica Latina y los objetivos de reestructuraci贸n del portafolio de Telef贸nica. La transacci贸n est谩 sujeta a aprobaciones regulatorias y condiciones de cierre.
Millicom (Tigo) a sign茅 un accord d茅finitif pour acqu茅rir les op茅rations de Telef贸nica en 脡quateur pour 380 millions de dollars, renfor莽ant ainsi sa pr茅sence en Am茅rique du Sud. Cette acquisition permet d鈥檈ntrer sur le march茅 des t茅l茅communications en croissance de l鈥櫭塹uateur, caract茅ris茅 par une 茅conomie stable et dollaris茅e avec des conditions macro茅conomiques favorables. L鈥櫭塹uateur, avec une population de 18,5 millions d鈥檋abitants et une am茅lioration des indicateurs fiscaux (d茅ficit r茅duit de 3,5 % 脿 1,4 % du PIB), pr茅sente un fort potentiel de croissance tant dans les services mobiles (+1,4 %) que dans le haut d茅bit fixe (+3,6 %). Telef贸nica 脡quateur occupe actuellement la deuxi猫me place sur le march茅 mobile. Cette op茅ration s鈥檌nscrit dans la strat茅gie d鈥檈xpansion de Millicom en Am茅rique latine et dans les objectifs de restructuration du portefeuille de Telef贸nica. La transaction reste soumise 脿 l鈥檃pprobation des autorit茅s r茅glementaires et aux conditions de cl么ture.
Millicom (Tigo) hat eine endg眉ltige Vereinbarung zum Erwerb der Telef贸nica-Gesch盲fte in Ecuador f眉r 380 Millionen US-Dollar unterzeichnet und st盲rkt damit seine Pr盲senz in S眉damerika. Die 脺bernahme erm枚glicht den Einstieg in den wachsenden Telekommunikationsmarkt Ecuadors, der durch eine stabile, dollarisierte Wirtschaft mit g眉nstigen makro枚konomischen Bedingungen gekennzeichnet ist. Ecuador, mit einer Bev枚lkerung von 18,5 Millionen und verbesserten fiskalischen Kennzahlen (Defizit von 3,5 % auf 1,4 % des BIP reduziert), bietet ein starkes Wachstumspotenzial sowohl im Mobilfunkbereich (+1,4 %) als auch bei Festnetz-Breitbanddiensten (+3,6 %). Telef贸nica Ecuador h盲lt derzeit die zweite Position im Mobilfunkmarkt. Der Deal entspricht Millicoms strategischer Expansion in Lateinamerika und Telef贸nicas Ziel der Portfolioumschichtung. Die Transaktion steht unter dem Vorbehalt beh枚rdlicher Genehmigungen und Abschlussbedingungen.
Positive
Strategic expansion into Ecuador's stable, dollarized economy with 18.5 million population
Acquisition of the second-ranked mobile operator in Ecuador for USD 380 million
Entry into a growing market with +1.4% mobile and +3.6% fixed broadband growth
Ecuador's improving fiscal position with deficit reduction from 3.5% to 1.4% of GDP
Transaction subject to regulatory approvals and closing conditions which may delay completion
Integration challenges in entering a new market with existing competition
Significant capital investment of USD 380 million required for acquisition
Insights
Millicom's $380M acquisition of Telef贸nica Ecuador expands its Latin American footprint, leveraging a stable dollarized economy for strategic growth.
Millicom's $380 million acquisition of Telef贸nica Ecuador represents a strategic move to strengthen its Latin American market presence, particularly in South America. This transaction gives Millicom entry into Ecuador's telecom sector, where Telef贸nica currently holds the second position in mobile services within a fragmented competitive landscape.
The deal offers several strategic advantages for Millicom. First, it provides immediate access to approximately 18.5 million potential customers in a country where 66% of the population lives in urban areas 鈥� typically more profitable segments for telecom operators due to infrastructure efficiency. Second, Ecuador's dollarized economy significantly reduces currency volatility risk that often challenges telecom operators in emerging markets, providing more predictable revenue streams and easier financial planning.
Ecuador's macroeconomic improvements further enhance this acquisition's appeal. The country has reduced its fiscal deficit from 3.5% to 1.4% of GDP while increasing reserves by $2.4 billion. The $4 billion IMF facility supporting Ecuador provides additional stability assurances, particularly important given telecom's capital-intensive nature requiring long-term investment horizons.
The telecom market itself shows healthy growth dynamics with mobile services expanding at 1.4% and fixed broadband at 3.6%, providing immediate revenue growth potential. Telef贸nica's second-place position in mobile offers Millicom a substantial foundation to build upon rather than starting from scratch.
For Millicom shareholders, this acquisition represents geographic diversification that should enhance cash flow stability across its broader Latin American portfolio, potentially reducing the company's overall risk profile while providing new growth avenues in a market showing consistent expansion in digital services.
Millicom (Tigo) Strengthens South American Leadership with USD 380 Million Acquisition of Telef贸nica Ecuador
Key Highlights:
The acquisition reinforces Millicom鈥檚 strategic position and operating scale in Latin America, strengthening its platform for long-term regional growth.
The acquisition also enhances Millicom鈥檚 geographic diversification, with the addition of Ecuador 鈥� a stable, dollarized economy with a supportive macroeconomic outlook 鈥� strengthening overall cash flow resilience.
Ecuador鈥檚 telecom sector shows consistent growth and regulatory momentum, offering a solid runway for long-term expansion and innovation.
Luxembourg, June 13, 2025 鈥� Millicom International Cellular S.A. (鈥淢illicom鈥�) has signed a definitive agreement to acquire Telef贸nica鈥檚 telecommunications operations in Ecuador in a transaction valued at USD 380 million. This acquisition aligns with Telef贸nica鈥檚 broader strategy to reshape its portfolio in Latin America and presents Millicom with a strategic opportunity to strengthen its presence in South America, expanding into a stable, dollarized economy with favorable macroeconomic fundamentals.
The deal significantly enhances Millicom鈥檚 regional footprint and commercial reach, laying the foundation for innovation, digital inclusion, and sustained long-term growth. Ecuador鈥檚 telecommunications sector 鈥� supported by consistent expansion in mobile and broadband services and an engaged regulatory environment 鈥� offers a compelling platform for Millicom to drive digital transformation.
Marcelo Benitez, CEO of Millicom, commented: "This acquisition reflects our long-term confidence in Latin America and our commitment to purposeful, sustainable growth. Ecuador offers a dynamic and growing digital market within a stable, dollarized economy, making it a natural fit for Millicom鈥檚 strategy. By expanding our presence in South America, we strengthen our platform for innovation, diversification, and long-term value creation.鈥�
The transaction is subject to regulatory approvals and other closing conditions.
Ecuador Profile:
Ecuador has a population of approximately 18.5 million (2025 est.), with a median age of 32.4 and 66% living in urban areas.
Dollarized, open economy with resilience across energy, agriculture, and services. The fiscal deficit dropped from 3.5% to 1.4% of GDP in one year, while reserves increased by USD 2.4 billion. Backed by a USD 4 billion IMF facility, Ecuador is strengthening its macroeconomic stability without cutting social spending.
IMF and World Bank-supported reforms are enhancing transparency, governance, and private-sector conditions, especially in infrastructure, energy, and telecom.
Telefonica Ecuador ranks second in mobile in a fragmented telecom landscape.
Mobile and broadband markets show consistent growth: +1.4% mobile, +3.6% fixed broadband.
Telecom麓s sector demonstrated resilience through recent economic volatility.
About Millicom Millicom (NASDAQ: TIGO) is a leading provider of fixed and mobile telecommunications services in Latin America. Through its TIGO庐 and Tigo Business庐 brands, the company provides a wide range of digital services and products, including TIGO Money for mobile financial services, TIGO Sports for local entertainment, TIGO ONEtv for pay TV, high-speed data, voice, and business-to-business solutions such as cloud and security. As of March 31, 2025, Millicom, including its Honduras Joint Venture, employed approximately 14,000 people and provided mobile and fiber-cable services through its digital highways to more than 46 million customers, with a fiber-cable footprint over 14 million homes passed. Founded in 1990, Millicom International Cellular S.A. is headquartered in Luxembourg with principal executive offices in Doral, Florida.
FAQ
What is the value of TIGO's acquisition of Telef贸nica Ecuador?
Millicom (Tigo) is acquiring Telef贸nica's operations in Ecuador for USD 380 million.
What is Telef贸nica Ecuador's current market position?
Telef贸nica Ecuador ranks second in the mobile market in Ecuador's telecom landscape.
What are the growth rates in Ecuador's telecom market?
Ecuador's telecom market shows consistent growth with +1.4% in mobile and +3.6% in fixed broadband services.
What is Ecuador's current population and economic status?
Ecuador has a population of 18.5 million (2025 est.), with a dollarized economy and improving fiscal metrics, including a reduction in deficit from 3.5% to 1.4% of GDP.
What regulatory conditions need to be met for the TIGO-Telef贸nica Ecuador deal?
The transaction is subject to regulatory approvals and other closing conditions, though specific details were not disclosed in the press release.
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