Proximus Buys Majority Stake In India's Route Mobile For EUR643M

Proximus SA BGAOFBGAOY inked a deal to acquire a 58% stake in Route Mobile for INR 59.224 billion (around EUR 643.0 million) through its subsidiary, Proximus Opal. 

Route Mobile specializes in offering CPaaS services in India, with a market capitalization of EUR1.1 billion. 

With this deal, Proximus boosted a significant presence in the CPaaS and DI market, with combined annual revenue of around EUR 900 million for Route Mobile and Telesign.

Also, Proximus enhanced its customer coverage by over 200 countries and territories and expanded exposure to high-growth markets such as the Indian subcontinent, Africa, Asia-Pacific, and Latin America.  

The deal will be followed by a reinvestment of EUR 299.6 million by some of the founding Route Mobile shareholders into Proximus Opal. 

"The acquisition of a majority stake in Route Mobile is a transformational step for our international CPaaS and digital identity activities. With Route Mobile and Telesign, Proximus Group now holds two strong and highly complementary global assets, both from geography and product expertise standpoints. This will allow us to reap the benefits of scale, considerably reinforce the product suite of both brands and realize synergies generating substantial value for our shareholders. This acquisition perfectly fits in our bold2025 strategy, with focus on strengthening our leadership in the domestic market and continuing to grow our international activities," said Guillaume Boutin, CEO.

The deal is expected to close within the next six to nine months.

Post-deal closure, Proximus expects to generate annual realized run-rate EBITDA synergies for three years of at least EUR 90 million.