PARIS: Vivendi SA’s Canal+ agreed to buy pay-TV operator M7 Group from private equity firm Astorg Partners SAS for a little more than 1 billion euros (US$1.1 billion) to expand into seven European countries and increase subscribers to nearly 20 million.
M7 operates in central and eastern Europe as well as the Netherlands and Belgium, and has 3 million subscribers, Vivendi said in a statement Monday. The operator distributes national programming as well international channels including Disney Channel, HBO, Eurosport, National Geographic, and Nickelodeon, it said.
The acquisition will add more than 400 million euros in revenue and increase profit for both Canal+ and Vivendi, according to the statement. It needs regulatory approval.
Canal+ is Vivendi’s second-biggest unit by sales and profit, behind Universal Music Group. The pay-TV unit had 2018 sales of 5.17 billion euros and operating profit before amortisation of 400 million euros. Sales at Canal+ slipped 0.3% last year, compared to 10%o growth for Vivendi’s music business.