Cellcom in Talks to Acquire Controlling Stake in iDigital Owner Icon Group
Cellcom is holding preliminary talks to acquire a controlling stake in Icon Group, the owner of iDigital, aiming to expand beyond its internal efficiency programs and leverage its retail expertise.
Cellcom is conducting preliminary talks to acquire a controlling stake in Icon Group, the owner of the iDigital retail chain, according to market sources. Cellcom currently operates Dynamica, a cellular retail chain with approximately 60 branches across the country that primarily sells mobile devices, including products from Apple and its competitor Samsung.
Sky Fund, which holds a 42.5% stake in Icon Group valued at approximately 160 million shekels, is seeking a valuation of 500 million shekels for the company and is asking 210 million shekels for its shares—representing a premium of over 30% above the market value. Icon Group serves as an official distributor and importer of Apple products in Israel. Sky managers Zvi Yochman and Nir Dagan held meetings with several interested parties earlier in the year regarding the sale of the controlling stake.
Financial Performance and Growth Strategy
Icon Group operates in two main sectors: retail and distribution, which encompasses the marketing and sale of Apple devices, cellular products, computers, and smartwatches through the iDigital store network. Financial reports for January-June 2026 indicate that the company posted a net profit of 22.4 million shekels, marking a 78.5% surge compared to the same period last year. This profit growth stemmed from a 20.6% increase in revenues, reaching 860 million shekels, despite the impact of Operation Roaring Lion, which affected customer traffic in company stores between March and June.
For Cellcom, the contemplated move marks a strategic turning point. After CEO Elad Addi completed a comprehensive turnaround, implementing deep operational efficiencies that significantly improved financial performance, reduced debt to its lowest level in years at around 1 billion shekels, and pushed cash flow to multi-year highs, the company is shifting from defensive consolidation to an aggressive expansion strategy through acquisitions. Icon Group could serve as the first major step in this direction if negotiations successfully mature into a binding agreement.
Synergies and Market Position
Acquiring Icon Group represents a natural progression for Cellcom, which already manages the largest handset distribution and retail operation among Israeli cellular providers through Dynamica. Dynamica generated a net profit of 72 million shekels in 2025, serving as a primary profit engine for the telecom operator. Addi brings extensive personal familiarity with the terminal equipment sector, having previously served as CEO of Dynamica and successfully positioned it as Israel's leading retail chain for mobile devices.
Cellcom, trading at a market capitalization of 5.7 billion shekels, has recorded 11 consecutive quarters of profit growth and concluded the second quarter of 2026 with a net profit of 92 million shekels. While Sky originally acquired control of Icon in 2017 at a valuation of 110 million shekels, and Bank Hapoalim's investment arm Poalim Equity acquired a 20% stake in 2020, the landscape of Apple distribution in Israel has evolved. Today, seven authorized distributors operate in the Israeli market, a factor that could facilitate regulatory approval from the Competition Authority should the transaction proceed.
