Millicom (Tigo) to Acquire Telef贸nica鈥檚 Operations in Uruguay for USD 440 Million, Expanding Presence in South America
Millicom (TIGO) has announced a definitive agreement to acquire Telef贸nica M贸viles del Uruguay for USD 440 million. The strategic acquisition is expected to be EFCF accretive by 2026 and will strengthen Millicom's presence in South America. The deal targets Uruguay, which boasts the highest GDP per capita in Latin America at USD 22,400 (2024) and maintains an investment-grade credit rating (BBB+).
The acquisition of Telef贸nica Uruguay, the country's second-largest mobile operator, will enable Millicom to leverage infrastructure and commercial synergies with its existing operations in Paraguay and Bolivia. The transaction will temporarily increase Millicom's leverage by approximately 0.1x. The mobile market in Uruguay has shown consistent growth of about 4% annually since 2022, driven by increasing postpaid adoption and the region's highest ARPU.
Millicom (TIGO) ha annunciato un accordo definitivo per acquisire Telef贸nica M贸viles del Uruguay per 440 milioni di USD. Questa acquisizione strategica dovrebbe aumentare l'EFCF entro il 2026 e rafforzare la presenza di Millicom in Sud America. L'operazione riguarda l'Uruguay, che vanta il PIL pro capite pi霉 alto dell'America Latina, pari a 22.400 USD (2024), e mantiene un rating creditizio investment-grade (BBB+).
L'acquisizione di Telef贸nica Uruguay, il secondo operatore mobile del paese, permetter脿 a Millicom di sfruttare sinergie infrastrutturali e commerciali con le sue attivit脿 esistenti in Paraguay e Bolivia. La transazione aumenter脿 temporaneamente la leva finanziaria di Millicom di circa 0,1x. Il mercato mobile in Uruguay ha registrato una crescita costante di circa il 4% annuo dal 2022, trainata dall鈥檃umento degli utenti postpagati e dal pi霉 alto ARPU della regione.
Millicom (TIGO) ha anunciado un acuerdo definitivo para adquirir Telef贸nica M贸viles del Uruguay por 440 millones de USD. Se espera que esta adquisici贸n estrat茅gica incremente el EFCF para 2026 y fortalecer谩 la presencia de Millicom en Sudam茅rica. La operaci贸n se enfoca en Uruguay, que cuenta con el PIB per c谩pita m谩s alto de Am茅rica Latina, con 22,400 USD (2024), y mantiene una calificaci贸n crediticia investment-grade (BBB+).
La adquisici贸n de Telef贸nica Uruguay, el segundo mayor operador m贸vil del pa铆s, permitir谩 a Millicom aprovechar sinergias comerciales e infraestructurales con sus operaciones actuales en Paraguay y Bolivia. La transacci贸n incrementar谩 temporalmente el apalancamiento de Millicom en aproximadamente 0.1x. El mercado m贸vil en Uruguay ha mostrado un crecimiento constante de alrededor del 4% anual desde 2022, impulsado por el aumento en la adopci贸n de planes postpago y el ARPU m谩s alto de la regi贸n.
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鞖半（瓿检澊鞐愳劀 霊� 氩堨Ц搿� 韥� 鞚措彊韱奠嫚靷澑 Telef贸nica Uruguay 鞚胳垬毳� 韱淀暣 Millicom鞚� 韺岆澕瓿检澊鞕� 氤茧Μ牍勳晞鞐愳劀 鞖挫榿 欷戩澑 靷梾瓿� 鞚疙攧霛� 氚� 靸侅梾鞝� 鞁滊剤歆�毳� 頇滌毄頃� 靾� 鞛堦矊 霅╇媹雼�. 鞚措矆 瓯半灅搿� Millicom鞚� 攵�毂勲箘鞙潃 鞎� 0.1氚� 鞚检嫓鞝侅溂搿� 歃濌皜頃� 鞝勲鞛呺媹雼�. 鞖半（瓿检澊鞚� 鞚措彊韱奠嫚 鞁滌灔鞚� 2022雲� 鞚错泟 鞐绊弶攴� 鞎� 4%鞚� 昃胳頃� 靹膘灔鞚� 氤挫澊瓿� 鞛堨溂氅�, 鞚措姅 歃濌皜頃橂姅 頉勲秷鞝� 臧�鞛呾瀽鞕� 歆�鞐� 雮� 斓滉碃 靾橃鞚� ARPU鞐� 頌橃瀰鞚� 瓴瓣臣鞛呺媹雼�.
Millicom (TIGO) a annonc茅 un accord d茅finitif pour acqu茅rir Telef贸nica M贸viles del Uruguay pour 440 millions USD. Cette acquisition strat茅gique devrait accro卯tre l'EFCF d'ici 2026 et renforcer la pr茅sence de Millicom en Am茅rique du Sud. L'op茅ration cible l'Uruguay, qui poss猫de le PIB par habitant le plus 茅lev茅 d'Am茅rique latine, 脿 22 400 USD (2024), et b茅n茅ficie d'une notation de cr茅dit investment-grade (BBB+).
L'acquisition de Telef贸nica Uruguay, le deuxi猫me op茅rateur mobile du pays, permettra 脿 Millicom de tirer parti des synergies commerciales et infrastructurelles avec ses op茅rations existantes au Paraguay et en Bolivie. La transaction augmentera temporairement l'effet de levier de Millicom d'environ 0,1x. Le march茅 mobile en Uruguay conna卯t une croissance constante d'environ 4 % par an depuis 2022, port茅e par une adoption croissante des forfaits postpay茅s et le plus haut ARPU de la r茅gion.
Millicom (TIGO) hat eine endg眉ltige Vereinbarung zum Erwerb von Telef贸nica M贸viles del Uruguay 蹿眉谤 440 Millionen USD bekannt gegeben. Die strategische 脺bernahme soll bis 2026 das EFCF steigern und die Pr盲senz von Millicom in S眉damerika st盲rken. Die Transaktion zielt auf Uruguay ab, das mit 22.400 USD (2024) das h枚chste BIP pro Kopf in Lateinamerika aufweist und 眉ber ein Investment-Grade-Rating (BBB+) verf眉gt.
Der Erwerb von Telef贸nica Uruguay, dem zweitgr枚脽ten Mobilfunkanbieter des Landes, erm枚glicht es Millicom, Infrastruktur- und kommerzielle Synergien mit den bestehenden Aktivit盲ten in Paraguay und Bolivien zu nutzen. Die Transaktion wird die Verschuldung von Millicom vor眉bergehend um etwa 0,1x erh枚hen. Der Mobilfunkmarkt in Uruguay verzeichnet seit 2022 ein stetiges Wachstum von etwa 4 % j盲hrlich, angetrieben durch die steigende Anzahl von Postpaid-Kunden und den h枚chsten ARPU der Region.
- Expected to be EFCF accretive starting in 2026
- Acquisition of second-largest mobile operator in Uruguay with nationwide coverage
- Significant synergies anticipated across network, operations, and commercial integration
- Uruguay offers highest GDP per capita in Latin America (USD 22,400) and investment-grade economy (BBB+)
- Mobile market growing 4% annually since 2022
- Only 0.1x temporary increase in leverage, indicating manageable financial impact
- Temporary increase in leverage by 0.1x
- Subject to regulatory approvals and closing conditions
- Significant capital investment of USD 440 million required
Insights
Millicom's $440M acquisition of Telef贸nica Uruguay strengthens regional position, diversifies cash flow, with modest leverage impact and expected 2026 accretion.
This $440 million acquisition of Telef贸nica M贸viles del Uruguay represents a strategic expansion for Millicom in South America. The deal values Telef贸nica's Uruguay operations at an enterprise value that appears calculated to capture operational synergies while expanding Millicom's regional footprint adjacent to existing operations in Paraguay and Bolivia.
The financial structure merits close attention. Millicom expects only a 0.1x temporary increase in leverage, indicating disciplined balance sheet management despite the substantial investment. More compelling is the projected EFCF accretion (Equity Free Cash Flow) beginning in 2026, suggesting management anticipates a rapid integration process with meaningful operational efficiencies.
Uruguay offers an attractive market profile with the highest GDP per capita in Latin America (
The transaction appears strategically sound from a network economics perspective. By expanding into a contiguous market with similar operational parameters, Millicom can leverage existing technical expertise while spreading central costs across a broader subscriber base. The emphasis on infrastructure synergies with neighboring operations in Paraguay and Bolivia suggests opportunities for backhaul optimization and shared network resources that should materially improve returns on invested capital.
Millicom (Tigo) to Acquire Telef贸nica鈥檚 Operations in Uruguay for USD 440 Million, Expanding Presence in South America
Key Highlights:
- Acquisition strengthens Millicom鈥檚 presence and scale across South America.
- Expected to be EFCF accretive starting in 2026.
- Diversifies Millicom鈥檚 cash flow sources in a country with a favorable macroeconomic outlook and investment-grade credit rating.
- Significant synergies anticipated across network, operations, and commercial integration.
- Positive market outlook supported by a stable regulatory environment and strong mobile market fundamentals, providing a solid foundation for sustainable growth.
Luxembourg, May 21, 2025 鈥� Millicom International Cellular S.A. (鈥淢illicom鈥�) today announced it has entered into a definitive agreement to acquire
Millicom expects the transaction to be聽EFCF accretive as early as 2026, driven by operational efficiencies and integration with its existing regional footprint. Upon closing, the company anticipates immediate scale benefits, enhanced synergies, and long-term value creation across its Latin American platform.
The transaction further diversifies Millicom鈥檚 cash flow sources, reducing overall risk supported by Uruguay鈥檚 stable macroeconomic environment and investment-grade credit rating (BBB+). The deal is expected to temporarily increase Millicom鈥檚 leverage by approximately 0.1x.
Strategic Rationale:
- Acquisition of a well-established, profitable mobile operator with nationwide coverage in Uruguay.
- Infrastructure and commercial synergies with Millicom鈥檚 existing operations in Paraguay and Bolivia.
- Strengthens Millicom鈥檚 digital ecosystem, enabling enhanced bundling and service innovation.
- Reinforces Millicom鈥檚 mission to accelerate digital inclusion and sustainable development in Latin America.
Marcelo Benitez, CEO of Millicom, stated:聽鈥淭his acquisition represents a key milestone in our purposeful growth strategy across Latin America 鈥� especially in Uruguay, a country with strong fundamentals and a forward-looking digital agenda. We are committed to being a long-term partner in Uruguay鈥檚 digital development by investing in mobile infrastructure, improving service quality, and fostering innovation and talent development.鈥�
The transaction remains subject to customary closing conditions, including regulatory approvals.
Country Profile: Uruguay
- Highest GDP per capita in Latin America at USD 22,400 (2024), with a stable currency and investment-grade economy (BBB+).
- Politically and institutionally stable, offering a favorable regulatory environment for foreign investment.
- Telecommunications market includes three mobile network operators and a competitive fixed-line and pay TV landscape.
- Telef贸nica Uruguay is the second-largest mobile operator, operating in a stable and growing market.
- Mobile market growing approximately
4% annually since 2022, driven by rising postpaid adoption and the region鈥檚 highest ARPU. - Regulatory focus remains on quality of service and universal access.
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| Press: | Investors: |
| Sofia Corral, Director Corporate Communications [email protected] | Michel Morin, VP Investor Relations [email protected] |
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
How much is TIGO paying for Telef贸nica's Uruguay operations?
When will the TIGO-Telef贸nica Uruguay acquisition be EFCF accretive?
What is the current state of Uruguay's mobile market where TIGO is expanding?
What synergies will TIGO achieve from the Telef贸nica Uruguay acquisition?
How will the Telef贸nica Uruguay acquisition impact TIGO's leverage?
