The transaction, which includes 100% of the share capital of Cancom UK&I, was completed for €398 million.
Telefónica Tech has agreed with Cancom Group to acquire Cancom UK&I for €398 million euros.
Telefónica Tech says this is part of its organic and inorganic growth plan to consolidate its position as the leading company in digital transformation.
In particular, the deal is intended to strengthen Telefónica Tech's cloud and cybersecurity division in the UK and Ireland: Cancom UK&I employs 600 professionals who will join the Telefónica Tech team.
The UK firm also offer a broad portfolio of digital services, including professional and managed services in IT, cybersecurity and multi-cloud solutions.
Cancom UK&I is a certified Microsoft Gold Partner for 9 competencies, including Azure Expert MSP, CSP Direct, LSP, Surface Silver Partner and FastTrack and it also has other relevant partnerships with leading technology vendors.
Cancom UK&I reached €155 million revenues in 2020, more than 50% of which came from its Managed and Professional Services division, and are growing strongly.
Cancom UK&I will achieve €190 million revenues in 2021 with an adjusted EBITDA, and a margin of 15.4% and revenues related to Managed Services and Professional Services revenues project differential growth rates of 20% and 26% CAGR18-21, respectively.
Telefónica Tech's revenues have grown by more than 25% in the first half of 2021 and above the sector average, as well as improving its positioning in Telefónica's four key markets, the UK, Spain, Germany and Brazil.
José Cerdán, CEO of Telefónica Tech, said, "This is a fantastic next step in our company’s growth. Telefonica Tech is a global tech powerhouse and we’re excited about what we will be able to deliver to our customers as Telefónica Tech in the UK&I."
Story of growth
Telefónica Tech was born out of the Telefónica's five-point strategy in November 2019, offering services in cybersecurity, cloud, Internet of Things (IoT), Big Data and Blockchain businesses.
So far this year Telefónica Tech has integrated acens – part of the Telefónica Group since 2011 – to strengthen its value proposition for SMEs in the cloud.
Earlier this month it announced the acquisition of Altostratus Cloud Consulting, a Spanish company that specialises in multi-cloud services and became a Google Cloud Premier Partner for Southern Europe, offering big data and machine learning solutions, among others.
Telefonica Tech is expected to steadily grow at double-digit rates by leveraging more than Telefonica Group's B2B customer base of more than 5.5 million.