Millicom International Cellular, which operates in the Paraguay market under the Tigo brand name, signed a binding agreement to acquire Paraguay’s cable pay-TV services provider Cablevisión for $150 million.

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Completion of the acquisition is subject to customary approvals, including from the relevant regulatory authorities in Paraguay. The closing is expected to take place towards the end of the year.

Cablevisión, which is controlled by Grupo Clarín, began offering TV services in the Paraguay’s capital Asunción in 1989. By the end of 2011 it announced it has covered 470,000 households and had 116,000 cable TV customers, with close to 10% of them subscribing to fixed broadband services. Cablevisión has exclusive rights to broadcast Paraguay’s soccer championship games.

With Cablevisión, Millicom looks to accelerate the adoption of fixed broadband services in Paraguay. The offering of high-speed Internet access will further leverage the Tigo brand in Paraguay, which together with the right level of investment should enable strong growth.

Since the acquisition of Amnet in 2008, Millicom’s cable revenues have grown on average 12% per year, reinforcing Millicom’s growth profile in Central America.

According to the company, Cablevisión recorded 22% revenue growth in local currency in 2011.

Addition information: On October 2nd, Millicom International Cellular S.A. announced that it has now received all necessary documentation to complete the transaction to acquire 100% of Cablevision Paraguay. Millicom will now assume management control of Cablevision Paraguay and will consolidate the operation’s results from October 1, 2012. The results for Cablevision Paraguay will be reported as part of the South America region.