Luxembourg, Luxembourg – Millicom, which operates under the Tigo brand, has entered into a definitive agreement to acquire 100% of Telefónica’s mobile operations in Uruguay for an enterprise value of $440 million.
This strategic move aims to significantly strengthen Millicom’s presence and scale across South America.
The acquisition is expected to boost Millicom’s equity free cash flow (EFCF) starting in 2026. It also diversifies the company’s cash flow sources by adding operations in Uruguay, a country highlighted for its favorable macroeconomic outlook and investment-grade credit rating.
Millicom anticipates achieving significant synergies through network, operational, and commercial integration.
The report notes that Uruguay has the highest GDP per capita in Latin America and a stable political and regulatory environment.
Telefónica Uruguay is the second-largest mobile operator in the country’s stable and growing mobile market, which has seen approximately 4% annual growth since 2022, driven by rising postpaid adoption and high average revenue per user (ARPU).
Key strategic reasons for the acquisition include:
- Acquiring a profitable mobile operator with nationwide coverage.
- Generating infrastructure and commercial synergies with Millicom’s existing operations in Paraguay and Bolivia.
- Strengthening Millicom’s digital ecosystem to enhance bundling and service innovation.
- Reinforcing Millicom’s mission to accelerate digital inclusion and sustainable development in Latin America.
Marcelo Benitez, CEO of Millicom, stated in the announcement that this acquisition is a “key milestone” in their growth strategy, particularly in a country with strong fundamentals and a forward-looking digital agenda. He added that Millicom is committed to being a long-term partner in Uruguay’s digital development through investment and talent development.
The transaction is subject to customary closing conditions, including receiving necessary regulatory approvals.
Millicom (NASDAQ: TIGO) is a leading provider of fixed and mobile telecommunications services in Latin America. Through its TIGO® and Tigo Business® brands, the company offers a range of digital services including mobile financial services, local entertainment, pay TV, high-speed data, voice, and business solutions like cloud and security. As of March 31, 2025, Millicom, including its Honduras Joint Venture, served over 46 million customers.
Founded in 1990, Millicom International Cellular S.A. is headquartered in Luxembourg with principal executive offices in Doral, Florida.
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