Saudi-based stc Group, an engine of digital transformation in the Mena region, said its ICT infrastructure subsidiary, Tawal, has signed a 20-year master services agreement with United Group for acquisition of its telecommunications tower assets in Europe.

 

The agreement, valued at €1.22 billion ($1.3 billion) supports stc Group’s ambitious strategy to expand its international footprint in key markets with significant growth potential, said the company in a statement.

 

Through this deal, it will take over United Group's infrastructure assets across Bulgaria, Croatia and Slovenia; a major milestone in its international expansion strategy.

 

Tawal currently owns a portfolio of over 16,000 telecom towers. It is actively supporting digital transformation plans in Saudi Arabia, thus xpanding its reach across new cities and rural areas in the kingdom.

 

It is actively rolling out smart-city-ready technologies such as camouflage telecom towers, smart poles capable of hosting 5G and IoT applications, in-building solutions, and small cells.

 

Marking Tawal’s first step in Europe, this move represents a major milestone in its international expansion journey and stc Group’s growth ambitions which have been active growing in the ICT adjacencies including recent investments in ICT, IoT, Cloud, Cybersecurity, Fintech and digital entertainment through its subsidiaries.

 

Marking Tawal’s first step in Europe, this move represents a major milestone in its international expansion journey and stc Group’s growth ambitions which have been active growing in the ICT adjacencies including recent investments in ICT, IoT, Cloud, Cybersecurity, Fintech and digital entertainment through its subsidiaries.  

 

Following completion of the acquisition, Tawal will own and operate more than 4,800 sites across Bulgaria, Croatia, and Slovenia (all European Union member states, two of which are already members of the Eurozone), providing the full range of passive infrastructure services ranging from ground-based towers, rooftops small cells to in-building-solutions. 

 

As part of the 20-year master services agreement with United Group, Tawal will deploy over 2,000 additional sharable sites, while co-location relationships with other mobile network operators will be maintained and expanded, enabling stc Group to drive digital transformation through providing world-class connectivity.  

 

On the strategic nove, stc Group CEO Olayan Alwetaid said: "Our agreement with United Group represents an exciting new chapter for Tawal and the wider stc Group. It is a significant milestone in our ambitious growth strategy and the expansion of our international footprint."

 

"We are already leading the transformation of Saudi Arabia’s digital capabilities and this transaction reinforces our commitment to investing in best-in-class technology and infrastructure to lead the way in enabling the world to connect, noted Alwetaid.

 

Tawal CEO Mohammed Alhakbani said: "We are delighted to partner with United Group in our first investment in the European market. The partnership supports our goal to continue to provide innovative and efficient ICT infrastructure solutions to our partners and deliver the quality of services we are renowned for."

 

The transaction, he stated, is subject to regulatory approval from the relevant authorities in Bulgaria and Slovenia. 

 

"Upon completion, our operations in the European market will be rebranded as Tawal Europe and will serve as the group’s platform for any future expansion in Europe," he added.-TradeArabia News Service