Spanish business-focused telco Ibercom has signed a preliminary agreement to merge its operations with mobile virtual network operator (MVNO) Masmovil Telecom on a cash and share exchange basis. According to a joint press release, the agreement will enhance the two companies’ capabilities to compete, by integrating fixed and mobile voice and data services, which will target both the residential and corporate markets. The deal involves Spanish venture capital firm Inveready selling its existing stake in Masmovil to Ibercom and taking an 11% stake in the new listed company, Masmovil Ibercom, while Ibercom’s majority shareholders Jose Poza and Luis Villar will take 32% of Masmovil Ibercom, and Masmovil’s founders Meinrad Sprenger and Christian Nyborg will own around 7% of the new operator. The deal, which has been approved by 90% of Masmovil shareholders, is subject to approval by the boards of directors of Ibercom and Masmovil.
Masmovil launched commercial services in 2008 and currently claims to have around 150,000 consumer MVNO customers, operating over the Orange Spain mobile network; it had EUR17 million (USD23.5 million) turnover and EUR2.2 million EBITDA in 2013.
Ibercom, founded in 1996, specialises in internet/data services for over 15,000 business customers. Its stock market capitalisation at current prices is around EUR75 million, which will reportedly rise to around EUR140 million via the merger.