Proximus Group acquires majority stake in Route Mobile to expand global CPaaS operations
Route Mobile Limited, a leading global provider in Communications Platform as a Service (CPaaS), has become a significant part of the Proximus Group following a strategic acquisition. The deal, finalized on May 9, 2024, marks a major expansion for Proximus, a prominent digital services and communications solutions provider based in Belgium with extensive international operations.
Strategic Implications of the Acquisition:
– Global Expansion: With this acquisition, Proximus Group aims to enhance its CPaaS capabilities and extend its reach into mature markets such as the USA and Europe, leveraging Route Mobile’s established presence and expertise.
– Synergy and Growth: The integration of Route Mobile with Proximus’s existing operations, including Telesign and BICS, is expected to create substantial synergies, accelerating growth and expanding the group’s product portfolio.
In July 2023, Proximus Group signed a definitive agreement with the founding shareholders of Route Mobile to acquire a significant share through Proximus Opal. The deal involved a cash consideration of EUR 643.0 million, reflecting a per-share price of INR 1,626.40. Following this, some founding shareholders of Route Mobile committed to reinvest EUR 299.6 million back into Proximus Opal, securing a 12.72% stake, which is expected to finalize soon.
Transaction Completion and Management Insights:
– Regulatory Approval and Shareholding: The acquisition received necessary regulatory clearances, and with the completion of the MTO process, Proximus Opal’s total shareholding in Route Mobile has reached 82.70%.
– Leadership and Vision: Rajdip Gupta will continue as the Managing Director & Group CEO of Route Mobile and will lead the CPaaS business globally. Guillaume Boutin, CEO of Proximus, emphasized the strategic nature of the acquisition, stating, “This expansion enhances our CPaaS capabilities, completes our geographical reach, and aligns with our expectations of creating substantial value.”
Guillaume Boutin further noted the importance of this strategic move to Proximus’s growth and sustainability objectives. He expressed enthusiasm for integrating Route Mobile into the Proximus family, which includes other international entities like Telesign and BICS, enhancing the group’s digital communications and identity solutions.
The acquisition of Route Mobile by Proximus Group represents a strategic enhancement of Proximus’s capabilities in digital communications and identity management. This move is poised to bolster Proximus’s position in the global market, creating a robust platform for digital transformation and offering innovative solutions to a broader client base.