Telefónica Cybersecurity & Cloud Tech carried out a capital increase of 17.1 million euros in order to finance part of its acquisitions made in recent months. The company, dependent on Telefónica Tech, thus acquires financial power to meet the demands of a booming market. In fact, the Telefónica Tech subsidiary headed by José Cerdán was one of the divisions that grew the most within the telecommunications group during the second quarter of the year, with an increase in turnover in 64.8% year-on-year and 71.9% for the first six months of the year.
This commercial vigor was reflected in “the good results of the companies on a like-for-like basis”, with improvements well above market growth and reinforced by “the integration of operations acquired over the last twelve months”.
After the new capital increase -according to the Official Gazette of the Commercial Registry (Borme)-, the company headed by Maria Jesús Almazor has a subscribed capital of 32.36 million euros. It is precisely this movement that was announced a few days after Telefónica Tech increased its capital by 56 million, with the same objective of strengthening the balance of its subsidiaries.
This latest increase in Telefónica Tech’s enterprise value responded to the subsidiary’s reorganization process in its migration from Telefónica to Telefónica Tech.
This transfer of assets from Telefónica Tech was also accompanied by a new injection of capital, amounting to 1.76 million euros, intended to cover the debts that the Tech division had towards other companies in the band.
For its part, the economic injection into the cybersecurity and cloud subsidiary will allow the company to contribute to the intra-group financing received for the acquisition of two subsidiaries over the past six months. It is acquisition of the British company Incremental, one of the fastest growing Microsoft partners in the UK, with a disbursement of 175 million pounds (about 209 million euros). With this operation, announced at the end of March, Telefónica Tech acknowledged having “strengthened its capabilities and its presence in the United Kingdom and Ireland, where it operates under the Telefónica Tech UK&I brand”.
The amount of the Incremental purchase was to value the business at 13.7 times its gross operating income and 14.2 times its operating cash flow, based on its expected results for the next year and excluding potential synergies.
Shortly after, Telefónica Tech returns to the fray with the acquisition of all shares of BE-ternawith a disbursement of up to 350 million euros, a figure that includes possible contingent payments linked to its future results.
BE-terna technology group, considered one of the top five Microsoft Dynamics Cloud Partners for the European continent, “specializes in driving digital transformation based primarily on Microsoft, but also works with vendors such as Infor, UI Path and Qlik to optimize the business process of different sectors”, as the company explains. In this case, the transaction was to value the German company at 13.7 times its EV/OIBDA, including synergies and its expected results for the whole of this year.