Telefonica Tech hasn't turned into quite the powerhouse that was anticipated at its launch in late 2019.
The Spanish newspaper, Cinco Dias, has reported that Telefonica group is looking to sell a minority stake of 49% in its Tech business unit. The business is valued at €1 billion and the operator group is looking to complete the transaction by the end of the year.
The business unit was set up in late 2019 as part of Telefonica group's five-point strategy.
Apparently, Telefonica has hired advisor KPMG and the Morgan Stanley bank. Potential buyers are said to include private equity funds such as Apax Partners.
Unlocking the power?
Telefonica Tech is responsible for IoT, cybersecurity, big data analytics, AI, cloud computing operations and blockchain. Its tag line is, “We unlock the power of integrating technology”.
Telefonica has been selling assets for the last few years as it battles to reduce its debt mountain, which stood at €35.8 billion at the end of Q1.
Since then Telefonica concluded the merger with Virgin Media in the UK, which brought it funds of £ 5.5 billion (€6.426 billion): £ 2.7 billion in a cash payment to Telefónica to offset participation in the joint venture and £2.8 billion to total funds from recapitalisation.
Also it has concluded the sale of its tower estate in Europe and Latin America to American Towers in Q2.