Telefónica buys British cloud company Cancom for 400 million | comp

Telefónica’s related operations in the cloud and security business. The operator has informed that its subsidiary Telefónica Cybersecurity & Cloud Tech has reached an agreement with Cancom Group to acquire 100% of the shares of the British company Cancom. The amount of the deal (project value) is 340 million pounds (about 398 million euros).

In a related fact submitted to the National Securities Exchange Commission (CNMV), the telecom company explains that Cancom Ltd is a British company that provides services Butt to tip Advanced Cloud and Security in the UK and Ireland, complementing the businesses that Telefónica Tech has developed in the region.

“Cancom Ltd’s revenue will reach 190 million euros in 2021 with an adjusted Ebitda margin of 15.4%,” Telefónica says, adding that revenue related to managed and professional services is growing differentially 20% and 26% annually between 2018 and 2021, and today they represent More than 50% of the company’s total revenue.

In the document sent to the Securities Exchange Commission, Telefónica specifies that the valuation refers to a multiplier of 13.5 EV/Oibda (based on forecast figures for 2021).

With this acquisition, Telefonica Tech is taking a relevant step in its UK consolidation strategy, building on the recent merger between O2 United Kingdom and Virgin Media, a subsidiary in the US state of Liberty Global.

The operation will be closed in the next few days.

Since the establishment of Tech at the end of 2010, Telefónica has gradually strengthened its presence in the business related to cloud, cybersecurity, big data and the Internet of Things, with several acquisitions and alliances. In the case of Telefónica Cybersecurity & Cloud Tech, the operator has implemented various capital increases, most recently in April, to raise the capital to around 10 million euros.

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The ultimate goal of the operator is the entry of the capital of specialized investors. In fact, it already has an open operation with KPMG and Morgan Stanley, which could close after the summer.

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