September 30, 2016
Digital Media and Media
Boxer sold to Com Hem
Boxer: a leading Swedish Pay TV operator
Founded in 1999, Boxer is a Swedish provider of pay TV channels on digital terrestrial television networks. Boxer is a part of Teracom Boxer Group, owned by the Swedish state, with pay TV and network operations in Sweden and Denmark.
With 500,000 customers, Boxer enjoys a high brand recognition as well as preference of choice in the SDU market. As part of the pay TV offering, approximately 40 channels are included through various channel packages. Boxer also offers live TV and on demand services through apps for smartphones and tablets.
Com Hem acquires Boxer as part of its plans to expand into the SDU market
In order to boost its expansion into the SDU market, Com Hem has entered into an agreement to acquire Boxer for an enterprise value of SEK 1,330m, representing an estimated 2016 Underlying EBITDA multiple of 4.4x.
The total consideration for the Boxer transaction is SEK 1,550m (based on balance sheet as per March 31, 2016), payable in cash at closing. Including Boxer’s net cash position of approximately SEK 220m (as of March 31, 2016), the acquisition is expected to impact Com Hem’s net debt position by approximately SEK 1,330m. The acquisition will be financed by a new three year SEK 800m credit facility with Swedbank and existing unutilised credit facilities.
The acquisition of Boxer represents a highly attractive opportunity for Com Hem to accelerate its reach in the SDU market, and expect on an annual basis this will add approximately SEK 300m of additional Underlying EBITDA to the Com Hem Group.
GCA Altium acted as sole advisor to the sellers.