YOU ARE AT:Telco CloudProximus to acquire India’s Route Mobile for $721 million

Proximus to acquire India’s Route Mobile for $721 million

Proximus Opal provides cloud-based telecom platforms for enterprise customers such as Salesforce and TikTok creator Bytedance

Proximus Opal, a unit of Belgian telecom service provider Proximus Group, announced plans to buy an almost 58% stake in cloud communications platform-as-a-service company Route Mobile, to the tune of 59.22 billion rupees ($721 million).

Per the agreement, the cloud company will pay 1,626.40 rupees per Route Mobile share and Clear Bridge Ventures, an affiliate of some Route Mobile promoters, will buy a minority stake of up to 14.5% in Proximus Opal for about 299.6 million euros (nearly $337 million). Further, according to Indian regulations, Proximus Opal will also have to make an offer to buy an additional stake of up to 26% in Route Mobile at the same price from retail shareholders.e

“The partnership … paves the way for Route Mobile to achieve a billion-dollar annual revenue run-rate much sooner than the anticipated 3–4-year time frame,” said Rajdip Gupta, Route Mobile’s CEO. Gupta has been selected to lead the combined company.

The filing also dictated that Proximus’ stake in Route Mobile may go up to 75%, depending on the outcome of the mandatory takeover offer (MTO). “Total cash consideration for this part of the operation will be determined by the effective MTO take-up,” continued the filing.

Proximus Opal provides cloud-based telecom platforms for enterprise customers such as Salesforce and TikTok creator Bytedance.

ABOUT AUTHOR

Catherine Sbeglia Nin
Catherine Sbeglia Nin
Catherine is the Managing Editor for RCR Wireless News, where she covers topics such as Wi-Fi, network infrastructure, AI and edge computing. She also produced and hosted Arden Media's podcast Well, technically... After studying English and Film & Media Studies at The University of Rochester, she moved to Madison, WI. Having already lived on both coasts, she thought she’d give the middle a try. So far, she likes it very much.