Belgian telecommunications company Proximus Group has entered into a definitive agreement to acquire approximately 58 percent of Route Mobile, a company specializing in Communication Platform as a Service (CPaaS) services, according to the official release. The acquisition, valued at around EUR 1.1 billion, positions Proximus as a major player in the digital communications and digital identity markets.
Strengthening Digital Communications and Identity
By combining the strengths of Route Mobile and Telesign, Proximus Group said it aims to become a worldwide leader in CPaaS and digital identity (DI). The strategic move aligns with Proximus Group's vision and adds significant scale to its presence in these markets, with combined annual revenue of approximately EUR 900 million.
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According to the statement, the acquisition solidifies Proximus Group's position in the CPaaS market, making it the third-largest player globally based on messaging volume. It expands Proximus' CPaaS portfolio, particularly in omnichannel capabilities, enabling the company to capitalize on the evolving customer engagement landscape. Route Mobile's CEO will continue leading the CPaaS activities within the Group.
In the digital identity segment, the acquisition enhances Proximus Group's offerings with the addition of Route Mobile's "TruSense" skills, complementing the existing capabilities of Telesign. The CEO of Telesign, will lead the digital identity activities within the Group.
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Significant Synergies and Growth Potential
According to the statement, the transaction is expected to generate significant value through synergies between Route Mobile and Telesign, resulting in annual run-rate EBITDA synergies of at least EUR 90 million within three years of closing.
Under the agreement, Proximus Opal will acquire a controlling stake of 57.56 percent in Route Mobile, followed by a reinvestment by some of the founding shareholders of Route Mobile into Proximus Opal.
The acquisition, in accordance with Indian regulations, triggers a mandatory takeover offer for up to 26 percent of Route Mobile's outstanding shares. Proximus Opal's stake could increase to approximately 75 percent depending on the outcome of the takeover offer.
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The agreement is subject to regulatory and anti-trust approvals, as well as the completion of the mandatory takeover offer. Proximus expects to finalize the transaction within the next six to nine months.
Proximus said it plans to finance the acquisition through bridge financing initially, followed by the issuance of a new bond upon closing. The transaction is not expected to have a significant impact on Proximus' leverage ratio.
