Millicom (Tigo) completes acquisition of Telefónica in Uruguay, strengthening its regional footprint in South America

Rhea-AI Summary

Millicom (TIGO) completed the acquisition of 100% of Telefónica Móviles del Uruguay S.A. (Movistar) on October 7, 2025 for an enterprise value of USD 440 million, following final approval from the Government of Uruguay.

The transaction gives Millicom an entry into Uruguay, expands its South America footprint, and is expected to create synergies across networks, operations, and commercial services. Integration is projected to deliver positive contributions to free cash flow beginning in 2026. The company said it will invest in infrastructure, innovation, and digital inclusion while complementing its regional coverage.

Positive

• Enterprise value of USD 440 million
• Official market entry into Uruguay on October 7, 2025
• Synergies across networks, operations, and commercial services
• Integration projected to add free cash flow from 2026

Negative

• None.

Insights

M&A Strategist

Acquisition expands regional scale with a defined price and a near-term cash‑flow milestone.

The deal buys 100% of Telefónica Móviles del Uruguay S.A. for $440,000,000, officially adding Uruguay to Millicom’s footprint and consolidating regional presence.

Synergy claims focus on networks, operations and commercial services; those are standard value levers but require clear integration plans and cost baselines to realize savings.

Watch the integration execution and the company’s ability to meet the stated contribution to free cash flow beginning in 2026; those are the concrete, short-term performance triggers for shareholders.

Telecom Operations & Finance Analyst

Transaction size and projected timeline imply manageable operational integration with measurable financial milestones.

The purchase price of $440,000,000 sets a firm valuation anchor; management highlights network and commercial synergies and plans to invest in infrastructure and innovation in Uruguay.

Key dependencies include integration of networks and operations, realization of stated synergies, and conversion of investments into positive free cash flow as claimed for 2026. Those items determine whether the acquisition improves consolidated cash generation.

Concrete near-term items to monitor: confirmation of synergy run-rate, capital expenditure plans versus stated investments, and reported free cash flow contributions in the company’s fiscal disclosures through 2026.

Millicom (Tigo) completes acquisition of Telefónica in Uruguay, strengthening its regional footprint in South America

Luxembourg, October 7, 2025 – Millicom International Cellular S.A. (“Millicom”) today announced that, following final approval from the Government of Uruguay, it has completed the acquisition of 100% of Telefónica Móviles del Uruguay S.A. (Movistar) for an enterprise value of USD 440 million. With this milestone transaction, Millicom officially enters the Uruguayan market, further consolidating its presence in South America and reinforcing its position as a leading regional telecommunications provider.

“This acquisition marks a decisive step in our growth strategy,” said Marcelo Benitez, CEO of Millicom. “We are thrilled to establish a presence in Uruguay – a country known for its stability and clear vision for digital transformation. We see tremendous value in the country’s talent, and our commitment is to invest in infrastructure, foster innovation, and create new opportunities that drive long-term digital growth.”

The transaction is expected to generate synergies across networks, operations, and commercial services, while also diversifying Millicom’s sources of value creation in a market with solid macroeconomic fundamentals and investment-grade credit ratings. Integration is projected to deliver positive contributions to free cash flow for shareholders beginning in 2026.

By adding Uruguay to its footprint, Millicom complements its coverage across South America, further consolidating its platform as one of the region’s principal telecom operators. The move also strengthens Millicom’s mission to accelerate digital inclusion and contribute to sustainable development across Latin America.

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For further information, please contact

Press: Sofía Corral, Director Corporate Communications press@millicom.com

Investors: Luca Pfeifer, VP Investor Relations investors@millicom.com

About Millicom

Millicom (NASDAQ: TIGO) is a leading provider of fixed and mobile telecommunications services in Latin America. Through its TIGO® and Tigo Business® brands, the company provides a wide range of digital services and products, including TIGO Money for mobile financial services, TIGO Sports for local entertainment, TIGO ONEtv for pay TV, highspeed data, voice, and business-to-business solutions such as cloud and security. As of June 30, 2025, Millicom, including its Honduras Joint Venture, employed approximately 14,000 people and provided mobile and fiber-cable services through its digital highways to more than 46 million customers, with a fiber-cable footprint over 14 million homes passed. Founded in 1990, Millicom International Cellular S.A. is headquartered in Luxembourg with principal executive offices in Doral, Florida.

FAQ

What did Millicom (TIGO) acquire in Uruguay on October 7, 2025?

Millicom acquired 100% of Telefónica Móviles del Uruguay S.A. (Movistar) for USD 440 million.

How much did Millicom pay for Movistar Uruguay (TIGO) and when closed?

The enterprise value was USD 440 million and the deal closed on October 7, 2025.

When will the Millicom (TIGO) acquisition start contributing to free cash flow?

The company projects positive contributions to free cash flow beginning in 2026.

Did the Millicom (TIGO) purchase of Movistar Uruguay receive government approval?

Yes, the transaction completed following final approval from the Government of Uruguay.

What strategic benefits did Millicom (TIGO) cite for the Uruguay acquisition?

Millicom cited expanded regional footprint, network and commercial synergies, and diversification of value sources.

How will the Millicom (TIGO) deal affect its South America coverage?

Adding Uruguay complements Millicom’s South America coverage and strengthens its regional telecom platform.