Business
Offer for VOZTELECOM OIGAA360, S.A
Offer for VOZTELECOM OIGAA360, S.A.
About this update from Gamma Communications Plc
[{"type":"text","content":"\n \nRNS Number : 3970D Gamma Communications PLC 18 February 2020 \n\nNOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM THE UNITED STATES OR ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION\n18 February 2020\nGamma Communications plc\nOffer to acquire VOZTELECOM OIGAA360, S.A - a leading provider of IP telephony services in Spain \nGamma Communications plc (\"Gamma\"), a leading technology-based provider of communications services to the business markets in the UK and the Netherlands, is pleased to announce that its wholly-owned subsidiary, Gamma Communications Europe B.V., has made an offer to acquire the entire issued and to be issued share capital of VOZTELECOM OIGAA360, S.A (\"VozTelecom\") (the \"Offer\").\nVozTelecom is admitted to trading on the Mercado Alternativo Bursátil in Spain. Accordingly, the Offer will be implemented by means of a takeover offer under the relevant Spanish legislation.\nThe Offer values the entire issued and to be issued ordinary share capital of VozTelecom at approximately €25.3 million (£21.0 million) on a fully diluted basis. The cash consideration payable pursuant to the Offer will be financed from the Gamma group's existing cash resource (which was £53.8 million as at 31 December 2019). VozTelecom's net debt at 31 December (adjusted for convertible bonds) was approximately €5.2m which would imply an enterprise value of c€30.5 million (c£25.3 million).\nFull details of the Offer can be found here:\nhttps://www.bolsasymercados.es/mab/documentos/HechosRelev/2020/02/05156_HRelev_20200218.pdf\nBackground information \nVozTelecom is one of the leading Cloud PBX providers in Spain with c40,000 seats which equates to a market share of 5% and is the largest Cloud PBX business aside from the major fixed line and mobile network operators. VozTelecom provides service to end users directly and through a network of wholesale partners, franchisees and dealers. Like Gamma, VozTelecom has an excellent reputation for delivery through a well-established partner channel.\nAs part of its stated European expansion strategy, Gamma has identified Spain as one of its key target geographies. With an overall market size of c. 18 million PBX seats (slightly smaller than the UK market) and a c...