Local company Direct One, which operates a national network of over 5,500 km fiber optics, took over Netcity, the company which has developed and currently operates the underground fiber optics network in Bucharest.

Direct One’s network only provides connections between cities. Thus, the acquisition allows the company to expand on the local telecom infrastructure market. The value of the transaction hasn’t been disclosed.

Romanian investors Teofil Muresan and Simion Muresan own Direct One, which had a turnover of EUR 9.5 million and a net profit of EUR 2.85 million in 2015. Netcity had revenues of EUR 9.1 million and a net profit of EUR 2.85 million.

Netcity’s former owner, UTI Grup, is one of the biggest IT&C integrators in Romania and much of its business comes from contracts with state institutions and companies. UTI Grup’s owner, local businessman Tiberiu Urdareanu, was arrested and sent to court by Romania’s anticorruption prosecutors last year for bribing Iasi’s former mayor Gheorghe Nechita to implement a traffic management system in the city.

editor@romania-insider.com