Invitel Group

Company History

Invitel Group developed its current structure in the wake of a series of mergers between various telecommunications, ICT and cable television operators, followed by a reorganisation process aimed at creating a customer-friendly company. The company joined up its service portfolio in 2003 under the ‘Invitel’ brand name, and the Group carries the same name to this day. Its three member companies (Invitel Telecommunications Zrt., Invitech Solutions Zrt. and Invitel Central Services Zrt.) carefully safeguard the extensive experience built up by their predecessor companies over several decades, and, thanks to their own added value and a stable ownership background, they look after close to half a million customers nation-wide.

The history of Invitel’s legal predecessors goes back to the times of economic regime change. In 1989, after Magyar Posta, a company that formally had a monolith structure in place, had been split in three parts, telecommunications activities were spun off into a separate company. On July 1, 1993 the Telecommunications Act came into force, which qualified public telecommunications services as concessional services. In February, 1994, after the results of regional concession applications had been announced, 12 independent telephone companies were established, including Invitel’s legal predecessors.

  • In 2001, the French-owned Vivendi Group was formed through the acquisition of legal predecessors established in 1994 and operating as concession companies: Digitel 2002, Déltáv, Jásztel and UTI.
  • In July, 2002, the company’s legal predecessors merged with Vivendi Telecom Hungary Rt., which was jointly acquired on May 13, 2003 by investment companies GMT and AIG. From September, 2003 the company continued its operation under the Invitel name, bringing its products and services under the Invitel brand.
  • In 2006 Invitel acquired Euroweb Zrt and Euroweb Romania S.A.
  • In 2007, Hungarian Telephone and Cable Corp. (HTCC), a US company, obtained ownership in the business. As of December 31, 2007, member companies of the extended Group (Hungarotel Zrt., PanTel Kft. and EuroWeb Zrt.) merged with Invitel, while Pantel Technocom Kft., currently Invitel Technocom Kft., has been operating since as a stand-alone legal entity.
  • Also in 2007 the Group acquired Tele2 Kft. By acquiring the Hungarian stake of Tele2, Invitel became the country’s leading alternative network provider, and grew into the second largest fixed-line operator. After January 1, 2008, Tele2 continued its operation under the name Invitel Telecom Kft., offering an ever wider range of services to partners. Its main profile focussed on the provision of telephone and Internet services via the networks of other telecommunications operators, available by way of carrier selection or pre-selection. In 2009 it became part of Invitel.
  • In 2008 Invitel acquired Memorex Telex Communications AG, headquartered in Vienna and its foreign subsidiaries.
  • In February, 2009, the Group’s operative management was assumed by Invitel Holdings A/S, registered in Denmark, taking over from HTCC. Then, starting from October, 2009, Mid Europa Partners (MEP) gradually acquired the full block of shares owned by TDC A/S (Tele Denmark), as a result of which, on July 5, 2010 Invitel was transferred into MEP’s ownership. MEP brought significant know-how to Invitel, primarily in the context of the region’s broadband telecommunications sector, which is of strategic value.
  • At the end of 2010, Turk Telecom International acquired Invitel’s international wholesale business unit and the Group’s foreign subsidiaries.
  • In 2011 Invitel acquired FiberNet Group. As a result of the acquisition, Invitel entered the Hungarian cable market, significantly enhancing the Group’s presence on the residential market. As at September 30, 2011, the FiberNet companies merged with Invitel.
  • In line with the practice customary in the telecommunications industry, starting from 2004, Magyar Telecom B.V. (Matel), which directly owned 100% of Invitel’s shares at this period, issued and refinanced bonds on the Luxembourg Stock Exchange in order to fund Invitel Group. In 2013, Matel (which owned the shares at this period) changed the Group’s capital structure with a view to putting a funding structure in place that could provide sustainable, long-term financing for the company’s optimal operation.
  • Since June 30, 2016, member companies in the Group, which now goes back to a history of over 20 years, have been extending professional services to residential customers and small businesses under the name of Invitel Telecommunications Zrt., and to medium-sized businesses, as well as corporate, institutional and wholesale clients under the name of Invitech Solutions Zrt. The Group’s two pillars are supported with administrative services by Invitel Central Services Zrt. Under the new organisational structure, the ownership background has remained unchanged, and the objective of the reorganisation was to fully shift the company’s operation towards the needs of customers coming from the different segments, also reflected in the Group’s macro structure.
  • In March 2017, the majority of Invitel Group's shares have been transferred to China-CEE Fund. China CEE Fund is a private equity fund managing USD 430 million. Their investment advisor is CEE Equity Partners, that amongst other locations has an office in Budapest. The fund is a leading financial investor in the Central and Eastern European region and currently has a total of 9 investments. Besides Budapest Metropolitan University, acquired in late 2014, it owns energy, pharmaceutical and other industrial investments in Poland, Czech Republic, Slovenia and Bulgaria.

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