UK-based cellular operator Virgin Group will target expansion in the Middle East and Africa following the signing of a merger agreement with UAE-based mobile virtual network operator Friendi Group.

The new entity, known as Virgin Mobile Middle East & Africa (VMMEA), will manage the operations of both organisations in Oman, Jordan, Saudi Arabia and South Africa, serving a combined network of one million mobile subscribers.

It will also look to establishing operations in other regional markets, with a strategy aimed at expanding the combined customer base of the Virgin and Friendi brands to five million users by 2015.

Virgin is the largest individual shareholder of VMMEA, with a significant minority stake. The organisation will be headquartered in Dubai and will be steered by Friendi Group CEO and founder Mikkel Vinter.