Proximus has agreed to buy 42.4 percent stake from MTN and Swisscom in BICS for EUR 217 million in cash.
MTN and Swisscom are the two minority shareholders of BICS with respective stakes of 20 percent and 22.4 percent.
This acquisition of BICS, a leader in the international carrier market, allows Proximus to combine the robust free cash flow generation of BICS with the attractive revenue growth of TeleSign.
MTN and Swisscom will remain important commercial partners of BICS.
BICS, as a global leader in digital communications, cloud communication services, mobility and IoT, addresses business-critical needs of telecom players, virtual network operators, service providers, enterprise software providers and global enterprises.
TeleSign is a fast-growing digital leader specialized in authentication and digital identity services to the world’s largest internet brands, digital champions and cloud native businesses.
The enterprise value of the transaction amounts to €569 million. This implies a 4.4x EBITDA multiple. The expected cash outflow for Proximus amounts to €217 million in 2021, taking into account the company’s net debt and customary debt-like items adjustments.
Swisscom believes this is the right time to sell its stake as it wishes to invest only in strategically relevant businesses. Swisscom handles much of its international telephone minutes business under a supplier relationship with BICS. Swisscom said its financial outlook for 2021 remains unchanged.