IDM Cyberia merger awaits approval
Two leading Internet Service Providers in deal estimated at $100 million
IDM and Cyberia, the two leading Internet Service Providers (ISP) in the country, a few weeks ago agreed to merge , pending the required approval of official authorities.
Together, they will become the largest ISP provider. The deal is valued at an estimated $100 million. The valuation of the deal was executed by PriceWaterHouseCoopers. It was a stock swap, with no cash exchanging hands.
Joined, the two companies will be owned by a newly established holding that will also include GDS, a data service provider (DSP). Antoine Fadel will be the chairman of the new holding and the CEO of operations will be Bassam Jaber, currently running Cyberia. Cyberia will have a 16 percent ownership in the new entity.
Initially, both companies will operate under their two distinct strong brands, although their operations will be merged together. Cyberia will also become a DSP. The deal includes only the local operations. IDM had earlier created Intrasky through a merger with Lunasat, for its operations outside Lebanon.
IDM and Cyberia, like other ISPs, are gearing towards providing 3G data services, competing against MIC 1 (Alpha) and MIC 2 (MTC), pending the approval of final licensing from the Ministry of Telecommunications. IDM (IncoNet Data Management) is owned by GlobalCom Holding (ATG and Audi Saradar Investment Bank through a structure of several holdings companies - 62 percent) and TeleInvest (Georges and Maroun Chammas – 38 percent) and is the result of a merger between the two companies of the same name. It is chaired by Antoine Fadel.
Cyberia, is owned by the Hariri group through Oger Telecom (95 percent) and Saudi Oger (five percent). The company is listed under the name Transmog Inc. Headquartered in Saudi Arabia, Cyberia started its operations as an ISP in Lebanon in 1995.
Date Posted: Feb 16, 2012