Bouygues Telecom set to acquire La Poste Telecom for €950m in strategic growth move

Bouygues Telecom has entered into an exclusive agreement to acquire 100% of La Poste Telecom, currently a leading virtual operator in the French market, in a deal worth €950 million. This transaction, aligning with Bouygues Telecom’s strategic growth plans, is poised to significantly enhance its mobile customer base by approximately 2.3 million. Additionally, the acquisition will leverage La Poste’s extensive distribution network, bolstering Bouygues Telecom’s market position with La Poste’s reputable brand, known for trust and proximity.

The transaction encompasses an exclusive distribution partnership involving La Poste group, La Banque Postale, and La Poste Telecom, further solidifying the collaborative framework between the entities. This partnership is expected to propel La Poste Telecom’s development in mobile services and introduce a new fixed offering, grounded in shared values of service quality, customer closeness, and employee respect.

With an anticipated sales generation of €300 million in 2023, La Poste Telecom brings a robust financial profile and a workforce of 400 employees to the table. The acquisition price, set at €950 million with an enterprise value of €963.4 million, reflects a strategic valuation aimed at fostering long-term growth and customer satisfaction.

The deal promises numerous strategic benefits for both entities. For Bouygues Telecom, it represents a pivotal step in expanding its mobile customer base and leveraging La Poste’s distribution channels. The partnership will enable Bouygues Telecom to enhance its service offerings and operational efficiencies, with La Poste Telecom’s customer base transitioning to Bouygues Telecom’s radio network by the end of 2026, ensuring a seamless migration without the need for additional network investment.

Financially, the acquisition is projected to contribute approximately €140 million in EBITDAaL per year starting in 2028, post the integration and migration of La Poste Mobile’s customers. The deal, expected to close by the end of 2024, is subject to regulatory approvals and the non-exercise of SFR’s pre-emption right.

Edward Bouygues, Chairman of Bouygues Telecom, expressed enthusiasm for the strategic partnership, highlighting the shared vision and values between the groups. Benoît Torloting, CEO of Bouygues Telecom, also underscored the transaction’s significance in strengthening Bouygues Telecom’s market presence and fostering service development leveraging La Poste’s nationwide network.