Millicom (Tigo) to Acquire Telefónica’s Operations in Uruguay for USD 440 Million, Expanding Presence in South America
Millicom (TIGO) has announced a definitive agreement to acquire Telefónica Móviles del Uruguay for USD 440 million. The strategic acquisition is expected to be EFCF accretive by 2026 and will strengthen Millicom's presence in South America. The deal targets Uruguay, which boasts the highest GDP per capita in Latin America at USD 22,400 (2024) and maintains an investment-grade credit rating (BBB+).
The acquisition of Telefónica Uruguay, the country's second-largest mobile operator, will enable Millicom to leverage infrastructure and commercial synergies with its existing operations in Paraguay and Bolivia. The transaction will temporarily increase Millicom's leverage by approximately 0.1x. The mobile market in Uruguay has shown consistent growth of about 4% annually since 2022, driven by increasing postpaid adoption and the region's highest ARPU.
Millicom (TIGO) ha annunciato un accordo definitivo per acquisire Telefónica Móviles del Uruguay per 440 milioni di USD. Questa acquisizione strategica dovrebbe aumentare l'EFCF entro il 2026 e rafforzare la presenza di Millicom in Sud America. L'operazione riguarda l'Uruguay, che vanta il PIL pro capite più alto dell'America Latina, pari a 22.400 USD (2024), e mantiene un rating creditizio investment-grade (BBB+).
L'acquisizione di Telefónica Uruguay, il secondo operatore mobile del paese, permetterà a Millicom di sfruttare sinergie infrastrutturali e commerciali con le sue attività esistenti in Paraguay e Bolivia. La transazione aumenterà temporaneamente la leva finanziaria di Millicom di circa 0,1x. Il mercato mobile in Uruguay ha registrato una crescita costante di circa il 4% annuo dal 2022, trainata dall’aumento degli utenti postpagati e dal più alto ARPU della regione.
Millicom (TIGO) ha anunciado un acuerdo definitivo para adquirir Telefónica Móviles del Uruguay por 440 millones de USD. Se espera que esta adquisición estratégica incremente el EFCF para 2026 y fortalecerá la presencia de Millicom en Sudamérica. La operación se enfoca en Uruguay, que cuenta con el PIB per cápita más alto de América Latina, con 22,400 USD (2024), y mantiene una calificación crediticia investment-grade (BBB+).
La adquisición de Telefónica Uruguay, el segundo mayor operador móvil del país, permitirá a Millicom aprovechar sinergias comerciales e infraestructurales con sus operaciones actuales en Paraguay y Bolivia. La transacción incrementará temporalmente el apalancamiento de Millicom en aproximadamente 0.1x. El mercado móvil en Uruguay ha mostrado un crecimiento constante de alrededor del 4% anual desde 2022, impulsado por el aumento en la adopción de planes postpago y el ARPU más alto de la región.
Millicom (TIGO)이 Telefónica Móviles del Uruguay를 4억 4천만 달러에 인수하는 최종 계약을 발표했습니다. 이번 전략적 인수는 2026년까지 EFCF 증가에 기여할 것으로 예상되며, Millicom의 남미 내 입지를 강화할 것입니다. 이번 거래는 2024년 기준 22,400달러로 라틴 아메리카에서 1인당 GDP가 가장 높은 우루과이를 대상으로 하며, 투자적격 신용등급(BBB+)을 유지하고 있습니다.
우루과이에서 두 번째로 큰 이동통신사인 Telefónica Uruguay 인수를 통해 Millicom은 파라과이와 볼리비아에서 운영 중인 사업과 인프라 및 상업적 시너지를 활용할 수 있게 됩니다. 이번 거래로 Millicom의 부채비율은 약 0.1배 일시적으로 증가할 전망입니다. 우루과이의 이동통신 시장은 2022년 이후 연평균 약 4%의 꾸준한 성장을 보이고 있으며, 이는 증가하는 후불제 가입자와 지역 내 최고 수준의 ARPU에 힘입은 결과입니다.
Millicom (TIGO) a annoncé un accord définitif pour acquérir Telefónica Móviles del Uruguay pour 440 millions USD. Cette acquisition stratégique devrait accroître l'EFCF d'ici 2026 et renforcer la présence de Millicom en Amérique du Sud. L'opération cible l'Uruguay, qui possède le PIB par habitant le plus élevé d'Amérique latine, à 22 400 USD (2024), et bénéficie d'une notation de crédit investment-grade (BBB+).
L'acquisition de Telefónica Uruguay, le deuxième opérateur mobile du pays, permettra à Millicom de tirer parti des synergies commerciales et infrastructurelles avec ses opérations existantes au Paraguay et en Bolivie. La transaction augmentera temporairement l'effet de levier de Millicom d'environ 0,1x. Le marché mobile en Uruguay connaît une croissance constante d'environ 4 % par an depuis 2022, portée par une adoption croissante des forfaits postpayés et le plus haut ARPU de la région.
Millicom (TIGO) hat eine endgültige Vereinbarung zum Erwerb von Telefónica Móviles del Uruguay für 440 Millionen USD bekannt gegeben. Die strategische Übernahme soll bis 2026 das EFCF steigern und die Präsenz von Millicom in Südamerika stärken. Die Transaktion zielt auf Uruguay ab, das mit 22.400 USD (2024) das höchste BIP pro Kopf in Lateinamerika aufweist und über ein Investment-Grade-Rating (BBB+) verfügt.
Der Erwerb von Telefónica Uruguay, dem zweitgrößten Mobilfunkanbieter des Landes, ermöglicht es Millicom, Infrastruktur- und kommerzielle Synergien mit den bestehenden Aktivitäten in Paraguay und Bolivien zu nutzen. Die Transaktion wird die Verschuldung von Millicom vorübergehend um etwa 0,1x erhöhen. Der Mobilfunkmarkt in Uruguay verzeichnet seit 2022 ein stetiges Wachstum von etwa 4 % jährlich, angetrieben durch die steigende Anzahl von Postpaid-Kunden und den höchsten ARPU der Region.
- Expected to be EFCF accretive starting in 2026
- Acquisition of second-largest mobile operator in Uruguay with nationwide coverage
- Significant synergies anticipated across network, operations, and commercial integration
- Uruguay offers highest GDP per capita in Latin America (USD 22,400) and investment-grade economy (BBB+)
- Mobile market growing 4% annually since 2022
- Only 0.1x temporary increase in leverage, indicating manageable financial impact
- Temporary increase in leverage by 0.1x
- Subject to regulatory approvals and closing conditions
- Significant capital investment of USD 440 million required
Insights
Millicom's $440M acquisition of Telefónica Uruguay strengthens regional position, diversifies cash flow, with modest leverage impact and expected 2026 accretion.
This $440 million acquisition of Telefónica Móviles del Uruguay represents a strategic expansion for Millicom in South America. The deal values Telefónica's Uruguay operations at an enterprise value that appears calculated to capture operational synergies while expanding Millicom's regional footprint adjacent to existing operations in Paraguay and Bolivia.
The financial structure merits close attention. Millicom expects only a 0.1x temporary increase in leverage, indicating disciplined balance sheet management despite the substantial investment. More compelling is the projected EFCF accretion (Equity Free Cash Flow) beginning in 2026, suggesting management anticipates a rapid integration process with meaningful operational efficiencies.
Uruguay offers an attractive market profile with the highest GDP per capita in Latin America (
The transaction appears strategically sound from a network economics perspective. By expanding into a contiguous market with similar operational parameters, Millicom can leverage existing technical expertise while spreading central costs across a broader subscriber base. The emphasis on infrastructure synergies with neighboring operations in Paraguay and Bolivia suggests opportunities for backhaul optimization and shared network resources that should materially improve returns on invested capital.
Millicom (Tigo) to Acquire Telefónica’s Operations in Uruguay for USD 440 Million, Expanding Presence in South America
Key Highlights:
- Acquisition strengthens Millicom’s presence and scale across South America.
- Expected to be EFCF accretive starting in 2026.
- Diversifies Millicom’s cash flow sources in a country with a favorable macroeconomic outlook and investment-grade credit rating.
- Significant synergies anticipated across network, operations, and commercial integration.
- Positive market outlook supported by a stable regulatory environment and strong mobile market fundamentals, providing a solid foundation for sustainable growth.
Luxembourg, May 21, 2025 — Millicom International Cellular S.A. (“Millicom”) today announced it has entered into a definitive agreement to acquire
Millicom expects the transaction to be EFCF accretive as early as 2026, driven by operational efficiencies and integration with its existing regional footprint. Upon closing, the company anticipates immediate scale benefits, enhanced synergies, and long-term value creation across its Latin American platform.
The transaction further diversifies Millicom’s cash flow sources, reducing overall risk supported by Uruguay’s stable macroeconomic environment and investment-grade credit rating (BBB+). The deal is expected to temporarily increase Millicom’s leverage by approximately 0.1x.
Strategic Rationale:
- Acquisition of a well-established, profitable mobile operator with nationwide coverage in Uruguay.
- Infrastructure and commercial synergies with Millicom’s existing operations in Paraguay and Bolivia.
- Strengthens Millicom’s digital ecosystem, enabling enhanced bundling and service innovation.
- Reinforces Millicom’s mission to accelerate digital inclusion and sustainable development in Latin America.
Marcelo Benitez, CEO of Millicom, stated: “This acquisition represents a key milestone in our purposeful growth strategy across Latin America — especially in Uruguay, a country with strong fundamentals and a forward-looking digital agenda. We are committed to being a long-term partner in Uruguay’s digital development by investing in mobile infrastructure, improving service quality, and fostering innovation and talent development.”
The transaction remains subject to customary closing conditions, including regulatory approvals.
Country Profile: Uruguay
- Highest GDP per capita in Latin America at USD 22,400 (2024), with a stable currency and investment-grade economy (BBB+).
- Politically and institutionally stable, offering a favorable regulatory environment for foreign investment.
- Telecommunications market includes three mobile network operators and a competitive fixed-line and pay TV landscape.
- Telefónica Uruguay is the second-largest mobile operator, operating in a stable and growing market.
- Mobile market growing approximately
4% annually since 2022, driven by rising postpaid adoption and the region’s highest ARPU. - Regulatory focus remains on quality of service and universal access.
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For further information, please contact:
| Press: | Investors: |
| Sofia Corral, Director Corporate Communications press@millicom.com | Michel Morin, 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, high-speed data, voice, and business-to-business solutions such as cloud and security. As of March 31, 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
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