Cellcom Israel to Acquire Golan Telecom for NIS 1.17B

Cellcom Israel Ltd. CEL announced today that the Company entered an agreement (the "Agreement" with Golan Telecom Ltd., or Golan, and its shareholders for the purchase of 100% of the shares of Golan, an Israeli cellular operator,  for the sum of NIS 1.17 billion ("Purchase Price"). Golan is one of the four other Mobile Network Operators ("MNO") operating in Israel in addition to Cellcom Israel. It launched operations in 2012 with a strong brand recognized for low-cost services, and primarily provides cellular services to approximately 900,000 customers (as of November 2015), with a comparatively low churn.  Golan is expected to end 2015 with total revenues exceeding NIS 500 million1. The Purchase Price represents an Enterprise Value, or EV2 of NIS 1 billion for Golan and EV/Adjusted EBITDA multiple of approximately 5.0, based on Golan's forecasted Adjusted EBITDA for 2015 (NIS 204 million)3. Ami Erel, the Company's Chairman of the Board, said: "In the last few years, Cellcom Group has repeatedly proven its ability to increase its service offerings, going from a cellular only operator to a full service communications group, with cellular, fixed line, internet and TV offerings, See full press release