Proximus Group to acquire majority stake in Route Mobile for €643m

Proximus Group is set to acquire approximately 58% of Route Mobile, a leading global Communication Platform as a Service (CPaaS) provider, bolstering the group’s footprint in the CPaaS and Digital Identity (DI) markets.

This acquisition, conducted through Proximus Opal, elevates Proximus Group as the third-largest player in CPaaS globally. The deal, worth an initial INR 59,224 million (EUR ~643.0 million), will significantly enhance Proximus’ CPaaS portfolio, while the expansion of Route Mobile’s “TruSense” capabilities will strengthen its DI offerings.

The integration of Route Mobile and Telesign, Proximus’ US-based affiliate, results in combined annual revenue of around EUR 900 million, and is expected to generate at least EUR 90 million in annual EBITDA synergies within three years post-closing. Post-acquisition, Rajdip Gupta, the CEO of Route Mobile, and Joe Burton, the CEO of Telesign, will continue to lead their respective business units.

Geographically, the merger will enable the Group to achieve a global reach, with Route Mobile’s presence in the Indian subcontinent, Africa, Asia-Pacific, and Latin America complementing Telesign’s strongholds in Europe and North America. The deal further strengthens Proximus’ commitment to facilitating digital communication and identity services across more than 200 countries and territories.

Following the initial acquisition of Route Mobile’s controlling stake, some of Route Mobile’s founding shareholders will reinvest in a minority stake in Proximus Opal. Depending on the outcome of the mandatory takeover offer, Proximus Opal’s share in Route Mobile could increase to about 75%.

Subject to regulatory and anti-trust approvals, the deal is expected to close within the next six to nine months. Proximus plans to finance the acquisition through bridge financing followed by the issuance of a new bond.