Proximus Group Acquires Route Mobile, Expanding Global Digital Services

On May 8, 2024, Route Mobile announced on the stock exchange filing that it was acquired by the Proximus Group through a strategic acquisition.

Proximus Group provides digital services and communication solutions in Belgium and other global markets.

In July 2023, Proximus Group finalised a deal with Route Mobile’s founding shareholders to acquire 57.56% of the company through Proximus Opal for ₹59,244 million (EUR 643.0 million) in cash, equivalent to ₹1,626.40 per share. Following this, certain founding shareholders of Route Mobile pledged to reinvest EUR 299.6 million in Proximus Opal, securing a 12.72% stake, expected to be finalised shortly.

In the past years, Proximus Group has already created a substantial presence in the Communications Platform as a Service (CPaaS) and digital identity markets. The expertise and multinational reach of Route Mobile and its US-based affiliate, Telesign, a leader in Digital Identity, will likely benefit Proximus Group.

The transaction was completed on Wednesday after receiving regulatory clearances and finalising the mandatory takeover offer (MTO) process. The MTO stake, coupled with the shares acquired from the founding shareholders, brings Proximus Opal’s total shareholding in Route Mobile to 82.70%.

Following the acquisition, Route Mobile joins the Proximus Group, emerging as one of the leading CPaaS players globally in terms of messaging volume. This strategic move positions Route Mobile to venture into established markets such as the USA and Europe, broaden its product range, and leverage synergies with Telesign.

The company stated that Rajdip Gupta will continue as Route Mobile’s Managing Director and Group CEO and will also spearhead the CPaaS business worldwide.

The Chief Executive Officer of Proximus, Guillaume Boutin, said, “Route Mobile is an exciting new addition to the Proximus Group’s family of international companies, which includes Telesign and BICS. This expansion enhances our CPaaS capabilities, completes our geographical reach and aligns with our expectations of creating substantial value. It’s a strategic move that we believe will contribute positively to Proximus’s risk profile and support our goals for sustainable growth and cash flow. I really look forward to embracing this new phase in our strategic development.”

The Managing Director and Group CEO of Route Mobile Limited, Rajdip Gupta, said, “Route Mobile completes 20 years of its establishment this year. It has been a remarkable journey from Bootstrap to IPO to a Profitable Unicorn. This development takes us one step further to our goal of becoming a $1 billion revenue company. We look forward to working with Telesign and creating a global leader in digital communications and digital identity within the Proximus Group.”

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