MegaFon Confirmed WebPlus Acquisition

Confirmation was established when MegaFon released its quarterly reports that it had acquired WebPlus, a St. Petersburg Internet provider. The company was purchased for USD 2.5 million dollars. Enterprise Value of the company is estimated to be USD 6,5 million.

MegaFon purchased 100% of the shares, with 31% being sold by TelComInvest, who also holds a share in MegaFon, and the remaining shares from Alisher Usmanov, a Ruissian businessman.

WebPlus (www.webplus.ru)
WebPlus was founded in 1996 in St. Petersburg, Russia, and at one time was the largest broadband provider in the area. However, since 2007, market share for the company has been reduced to 1.5%, followed by a dramatic decrease in revenues. Currently, WebPlus only services about 20,000 customers and is running on outdated technology.

MegaFon (www.megafon.ru)
MegaFon is one of the top three mobile phone service providers in Russia. The company, however, is the only one out of the top three that operates its own network. The company has over 57 million subscribers to their service and has branched out into the Tajikistan, Abkhazia, and South Ossetia regions.

MegaFon was first established in 1993 by the mayor off St. Petersburg under the name “North-West GSM.” The success of the company was quick to come and many expansions took place, continuing until it reached what is known today as MegaFon.