Spanish operator Masmovil has agreed to buy mobile virtual network operator (MVNO) Lycamobile Spain, saying this will strengthen its position in the prepaid segment.
The deal is valued at €372 million and Masmovil has opted to retain the Lycamobile brand in Spain.
Lycamobile Spain, part of the Lyca Group, launched in 2010 and now has over 1.5 million customers.
"We are very pleased to incorporate Lyca into our Group as it fits perfectly into our commercial strategy, “ said Meinrad Spenger, CEO of Masmovil. “We welcome
Lyca's clients and I hope that they will soon be able to enjoy the advantages of belonging to Masmovil Group.”
Masmovil, which has 10.4 million customers and revenues of around €1.8 billion, forecasts the acquisition will help it reduce mobile network costs and make savings of around €75 million per year, with annual savings of €70 million expected by 2021.
Allirajah Subaskaran, founder and Chairman of the Lyca Group, commented, “When we entered Spain, we dreamed of building the country’s largest MVNO with high-quality, cost effective mobile services. We have now succeeded in that mission, and the acquisition by Masmovil is an affirmation of our success and we are proud that Masmovil has retained the Lycamobile brand for the long term.
"We wish Masmovil the very best and continued success and growth in Spain.”
He said the Lyca Group would now focus attention on building its global presence and moving into new markets to add to its existing 23. Lycamobile launched in Uganda in January.
The transaction will be financed by bank debt. The acquisition is subject to approval from antitrust authorities.