MASMOVIL Group strengthens its commercial positioning with the acquisition of the mobile operator “Lebara España”

  • With this acquisition, MASMOVIL Group strengthens its leadership in the ethnic segment with a new prestigious brand.
  • MASMOVIL estimates that the incorporation of Lebara España to MASMOVIL Group will allow it to obtain operating synergies (mainly through reduction of OMV Contract costs) that will result in EBITDA post-synergies of c24M€.
  •  MASMOVIL Group continues consolidating its position as the fourth Spanish telecommunications operator with more than 7,5 million of clients

Madrid, November 21st, 2018.- After reaching an agreement with Lebara´s shareholders, MASMOVIL Group has announced today the acquisition of the mobile operator “Lebara España”, that will allow the Company to strengthen its commercial position and to continue leading the market growth of the telecommunications in Spain.

MASMOVIL will pay a maximum amount of 55M€, including a 50M€ cash payment and certain compromises with clients and employees for 2.5M€, having also agreed an earn-out of up to 2.5M€ depending on the success of the migration process of the client base to MASMOVIL’s network. The total cash consideration would thus result in an EV/EBITDA multiple of 7.5x presynergies and 2.3x post-synergies, assuming all contingent payments are materialized.

"Lebara Spain" is a virtual mobile operator that uses Vodafone´s network -an agreement which ends in the second quarter of 2019 – specialized in the prepaid segment, mainly to immigrants. The company, which registered revenues of 50M€ in the last twelve months, has more than 420.000 pre-paid customers with a high level of loyalty.

This new transaction allows MASMOVIL Group to obtain significant advantages, as, the contribution to lead the ethnic segment by acquiring a prestige brand, and once it is incorporated into the MASMOVIL Group network and thanks to its national roaming agreement, a significant potential for improving the profitability of "Lebara Spain" will be generated, resulting in an approximate EBITDA around 24M€ taking into account the last 12 months revenues.

Following this acquisition, MASMOVIL Group continues consolidating its position as the fourth telecommunications operator in Spain with more than 7.5 million customers.

"This operation is very important for us because it allows us to reinforce our leadership in a market segment where we already had an important position with our brand Llamaya", said Meinrad Spenger, CEO of MASMOVIL Group. "The customers of Lebara Spain will soon enjoy the advantages of being part of MASMOVIL Group and of the most satisfied customers in the Spanish market," he added.

About MASMOVIL Group

MASMOVIL Group is the fourth largest converging telecommunications operator in Spain that provides fixed, mobile and broadband Internet services for residential, business and Wholesale, through its main brands: Yoigo, Pepephone, MASMOVIL, Lebara and Llamaya.

The group relies on a fiber/ADSL network for broadband and 3G and 4G network for mobile telephony. At present, it has more than 14,4 million fiber households and reaches 18 million homes with ADSL. The companies’ 4G mobile network covers 98,5% of the Spanish population. The Group has 7,5 million customers in Spain.

MASMOVIL received the award for the best fixed broadband operator by Grupo ADSL Zone, and the award for best fiber operator by the website, Grupo Informático, in 2017.

Additionally, it is the operator with the fastest fiber network in Spain according to a study by the company, nPerf, and the operator with the fastest 3G+4G aggregated mobile network in Spain, according to a study by the company, Tutela.

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