Cellcom has purchased competitor Golan Telecom for a reported 1.17 billion shekels ($300,700,000).
Golan Telecom first launched in 2012 and is known for its reliable and low-cost services. As of November 2015, the company provides cellular services to nearly 900,000 customers in Israel.
In August, three years after entering the market as part of the cellular reform that led to a major drop in prices, Golan placed itself on the marking citing its inability to grow in the domestic telecommunications market under current conditions.
Ami Erel, Cellcom's Chairman of the Board, praised the acquisition, which will be implemented pending approval from the Communications Ministry and the Antitrust Authority.
"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, and succeeding despite the fierce competition.
"The acquisition of Golan Telecom will allow us to add a low-cost brand to our portfolio," Erel declared, "and I'm confident that Cellcom's management will be able to successfully combine Golan's operations as the Company's low cost brand."
"I thank the Company's controlling shareholders for their unrelenting support and assistance in enhancing value for the Cellcom Group."