Vodafone, the second largest mobile telephony operator on the local market, has purchased 66% of GSM retailer Proton Technologies - one of the largest partners of rival company Orange Romania, which holds a 73-store network, most of which are located in Moldavia.
Following the deal, Proton will put an end to the ten-year collaboration with Orange. "Proton stores will go through a rebranding process in the next few weeks, after which they will start to sell Vodafone products and services," Liliana Solomon, CEO of Vodafone, told ZF.
Proton, which estimated turnover worth 50 million euros last year, was entirely held by Gabriel Sandu, 32, who founded the company in 1999. Proton was the third largest Orange dealer on the local market, after the Fonomat and Euro-GSM networks.
During the first nine months of last year, Proton posted a net profit worth 0.5 million-euros, alongside turnover worth 31 million euros, according to data previously provided to ZF by Gabriel Sandu. In the wake of the deal, Sandu holds 34% in Proton, and will "on medium term" remain involved in the retailer's operations, as executive manager, according to Vodafone. The two parties did not wish to provide details on the value of the transaction. Considering the similar acquisitions conducted on the market, the value of the Vodafone-Proton deal could amount to several million euros.
Sandu was assisted in the transaction by law firm Bulboaca si Asociatii SCA (Bulboaca & Associates) and by investment bank Raiffeisen Investment. This is Vodafone's second acquisition of a GSM retailer that operates mainly in Moldavia, after it acquired Petrocom GSM retailer last year. The two deals are aimed at consolidating Vodafone's presence in the North of the country, where the operator had a less developed network than its rivals. Arun Sarin, CEO of Vodafone previously said that the operator had a very strong presence in South Romania, but was seeking to strengthen it in the Northern part of the country.
In fact, presence in Moldavia is of key importance, given that the penetration rate of mobile telephony is lower in the region compared with Transylvania and the South of the country, which allows operators more room to grow.
Gabriel Sandu says he made the decision to sell after he assessed the company's future potential on the local market.
"It is a decision I arrived at after making a thorough strategic analysis of the Romanian GSM market," Gabriel Sandu told ZF, but did not provide any further details.
However, the decision to sell is probably linked with Proton's failed attempt to take over another Orange dealer, Vegastel, which would have enabled the retailer to be better positioned among Orange's partners.
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