The deal will generate synergies worth €70 million by 2021
Masmovil has announced that it will be purchasing the world’s largest mobile virtual network operator (MVNO), Lycamobile Spain, for €372 million.
The Lycamobile brand will be retained following the acquisition.
"We are very pleased to incorporate Lyca into our Group as it fits perfectly into our commercial strategy,” said Meinrad Spenger, CEO of Masmovil. “We will continue to work on creating value for our customers and for the telecommunications market. We welcome Lyca’s clients and I hope that they will soon be able to enjoy the advantages of belonging to MASMOVIL Group."
The purchase offers Masmovil a boost in its prepaid mobile segment, in which Lycamobile is specialised and has over 1.5 million customers. These customers will be added to Masmovil’s own customer base, raising the total to around 10.4 million.
It is hoped that Masmovil’s reduced network costs and resulting synergies will increase the company’s EBITDA by €70 million, starting in 2021.
The deal also suits Lycamobile, allowing them a cash injection to spend on entering new markets. The company already operates in 23 countries, with the latest move in January seeing a launch in Uganda.
“We will now turn our attention to building our global presence with entry into new and exciting markets to add to our existing 23 markets, and furthering Lycamobile’s capabilities in the industry by rolling out similar MNO launches to that which we recently did in Uganda," said Lycra Group founder Allirajah Subaskaran.
The deal is subject to antitrust regulatory approval.
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