Contact

Sale of Internet service companies


, ,
Integral service around a transaction
BY : Diego GutiérrezJanuary Mon, 2019

We analyse from the point of view of corporate finance some of the company sales of internet services confirmed in the last year 2018. We talk about a generalised sector, where a customer can obtain mailing services, FTP, Telnet or telephony services, among others. In this post we talk about the Spanish operator Excom, which ended the year with a triple acquisition, and other sales operations worldwide.

Spanish broadband operator Excom

With more than 11 years of experience in the sector, Excom defines itself as a broadband operator which has its own telecommunications network based on 4G LTE, WIMAX and SATELLITE technology. The company's mission is to offer a quality Internet, fixed and mobile telephony service in rural and non-urban areas, sparsely populated or poorly served by large operatorsand all of this without the need for telephone wiring.

Continuing with its growth plan, Excom confirmed on 19 December three company purchases related to its activity. The first of these was the operator TelewifiThe operation consisted of the purchase of the company, based in Benamejí (Córdoba), for 60,000 euros. The operation consisted of the acquisition of the 50% of the operator of Least Cost Routing Telecom.

The second company sold to Excom was Megavista for an amount of 1.25 million. The selling party was composed of Lormar Hotels, Gar-Sistemas de Gestión, and some private individuals. Megavista, based in Elche, is an operator of rural Internet, broadband and IP telephony services, among others.

Finally, and at the same time, Excom also acquired the operator Wificom. This operator offers its services in Alicantewith low rates for home internet and rural internet. In this last sale the operation has been unknown.

Luis Abenza, CEO of Excom, said the following about this triple deal: "With these operations we consolidate our presence in the Valencian Community and Andalusia, where we are working to deploy new FTTH and FWB networks, in order to offer our customers the best possible service. high-speed internet services at competitive prices to more and more customers.

Other operations in the sector worldwide

  • On 9 November, the sale of the US company was publicly announced. Finisar Corporationtechnology company for fibre optic subsystems and network performance test systemsin order to merge with II-VI Incorporated. The transaction is estimated to be financed by cash and shares of the company with an equity value of approx. 3.2 billion. The transaction is expected to close in mid-2019, subject to the approval of each company's shareholders.

 

  • Zayothe international provider of fibre, light and IP services, entered into an agreement on 31 June to acquire Neutral Path Communications and Near North Partners for 31.5 million. Esta operación se convirtió en la última de una serie de acquisitions integradas que el proveedor de servicios hizo de los operadores regionales de fibra. Neutral Path, por su parte, es un long-distance infrastructure provider which operates a fibre network in the Midwestern United States.

 

  • On 16 October the company J2 Global (Los Angeles, California), completed five acquisitions in the third quarter of 2018. One of these was the purchase of Communicator CorpJ2 Global, a digital communications company that specialises in providing mobile and email communications. J2 Global thus increased the company's global customer base and provided access to new markets.

 

  • Web.com is a global provider of full range Internet services and online marketing solutions for SMEs. On 21 June it announced a definitive agreement to be acquired by an affiliate of Siris Capital Groupin a transaction that was valued at approximately 2 trillion dollars.

Our diferentiation

Market Research Technology
Our team of market analysis specialists is continuously analyzing the investments of the most active markets in the industry in order to unceasingly contribute ideas of the current market situation and identify the most relevant trends for senior management. We integrate the most relevant sources of information which allows us to discover the most interesting companies for venture capital and similarly helps us to identify the investors with the highest probability of involvement in an M&A process to ensure the success of our sell-side operations.

The reports and deductions of our advisors provide a broad view of the sector, both geographically and from the complementary or adjacent markets perspective.
Technology Data Analytics
for M&A
Advanced data anlytics is a weapon". Intelfin is an artificial intelligence tool we use for investing and creating value in SMEs through competitive analytics and the enterprise environment.

IntelFin consists of a cognitive system, which, through the application of advanced analytical technologies, facilitates the automation of investment and financing decisions in the field of non-listed companies and especially SMEs in high-growth sectors.

The information related to these companies is characterized by their lack of transparency and heterogeneity; thus, it is necessary to develop an advanced analysis which is as much predictive as prescriptive and is developed in a natural language custom, suitable to obtain greater clarity and knowledge of the investment scope.

The IntelFin system focuses especially on analyzing the variables that define and influence the competitive environment of a sector and the positioning of a company, analyzing their influence on future value creation. Therefore, IntelFin supports strategic decision-making to senior management by resolving questions such as:

¿What are my competitors' priorities, strategies and expansion plans? Who's my competition? Which competitor is most likely to grow at a higher rate?
Which areas of activity/business models will receive the most investment? Which sectors are most attractive to investors?
Which companies are going to experience the most growth in the near future? Which companies are most likely to receive investment or be acquired?
Training Methodology
We have developed training programs in an innovative set-up which guarantees our teams the acquisition of technical competences both in the field of corporate finance and in the field of psychology, that is much needed when it comes to negotiation processes.

We have a culture of continuous improvement of our processes, closely related to the use of information systems that allow the enhancement of internal communication between our teams, as well as external communication with our customers. Hence, we extend best practices identified internally in an efficient and rapid manner among our members.

Are you one of those who prefer to be well informed when making decisions?

M&A NEWS
INDUSTRIAL REPORTS
closearrow-circle-o-downchevron-downcrossmenu