Rural broadband provider Imagine has been taken over by Armenian telecoms giant Team Group.

The company, which had suffered huge losses, say the investment will help provide the resources and support needed to enhance its long-term performance.

The purchase of a majority stake in Imagine, marks a first investment in an EU country by Team Group, which owns Armenia’s largest fixed line telecoms operator and second largest mobile operator, providing services to more than 1.1 million customers.

Team Group says it is investing in Imagine because it believes in the long-term potential of the Irish market, and it has ambitious plans to expand into Europe.

The terms of the transaction were not disclosed. However, there have been reports it is likely to be close to the €250m in losses that Imagine has on its books.

A new management team under experienced telecom and business leader Niall Tallon has been appointed to lead the company.

Mr Tallon, who bring over twenty years’ experience in the telecom sector, both internationally and here in Ireland to his new role, said the investment by Team Group marks the beginning of an exciting new chapter.

“The National Broadband Plan, supported by the Irish Government, has had a massive impact on the Irish broadband landscape.

"Over the last 24 months, the shift towards fibre technology has been transformative, particularly in rural Ireland.

"We have bought a company with a proud history of innovation and a well-recognised brand.

"This investment by Team Group will finance our five-year strategic plan and enable us to pivot faster to fibre, enhancing service stability and quality for customers.”   

“We have already started working with our dedicated team and market partners to expand our reach and offerings and deliver faster broadband and innovative solutions across the country.

"We believe the capabilities of our management team and the Team Group, offers a unique platform to grow in the Irish market” Mr Tallon said.

Team Group of Companies, led and owned by Armenian entrepreneurs Hayk and Alexander Yesayan, also owns Team Telecom Armenia, a leading provider of mobile, internet, and digital TV services with over 1.1 million customers.

Alexander and Hayk described their investment as a significant milestone not just for Imagine but also for Team Group as a whole.

“This is our first investment in a company in the EU and it underscores our confidence in Imagine’s potential for long-term growth in Ireland.

"It is the first step in our ambition to expand into the European market. By leveraging innovative technologies and collaborating with infrastructure partners we can provide the very best broadband speeds and services for Imagine’s customers and communities.”

Since 2018, Imagine has made significant investment in critical infrastructure across rural Ireland.

During that time, the company has delivered best in class service including through a strengthened e-commerce platform, doubling its customer base.

Existing shareholder Canadian company Brookfield will remain a minority shareholder and will partner with Team Group.

They said Imagine they had worked closely and constructively with its bank lenders, led by Dutch bank ING, to ensure a long-term sustainable solution.