Cgates expands operations by acquiring part of Splius business

Cgates, Lithuania’s second-largest provider of internet and smart TV services, has acquired part of the business of telecommunications provider Splius. The transaction, valued at more than Eur 13 million, was supported by a team of experts from law firm Ellex Lithuania.

“Lithuania has a unique internet service provider market – rather than being dominated by a few large operators, as is common in Western Europe, it remains highly fragmented. This transaction is important because it contributes to the consolidation of Lithuania’s telecommunications market and increases the availability of modern services. We are witnessing the transformation of numerous small networks into a modern digital infrastructure across Lithuania’s regions,” comments Enrika Tamašauskaitė, Associate Partner at Ellex Lithuania, who led the transaction on behalf of the firm.

Ellex Lithuania advised Cgates on M&A, competition law and regulatory matters, infrastructure integration issues, and represented the company before the Competition Council of Lithuania and other public authorities.

Legal team involved in the transaction: Enrika Tamašauskaitė, Ąžuolas Čekanavičius, Justinas Celencevičius, Martynas Šeškus, Lauras Butkevičius, Karolina Levinaitė.

As a result of the transaction, Cgates became the sole shareholder of a newly established Splius company. Following its integration into Cgates, the company will begin providing fiber-optic internet and smart television services in 11 regions across Western and Northern Lithuania.

Over the past three years, Cgates has invested more than Eur 20 million in improving service quality throughout Lithuania. The total number of internet, television, and telephony services provided by the company now exceeds 250,000.