Proximus sets ambitious targets after acquisition of Route Mobile in India's largest inbound FDI deal
Proximus is aiming to double its revenue from the digital communications business to $3 billion and operating margins to 15% over the next 3-4 years after buying Route Mobile in India’s biggest in-bound FDI deal in the domestic cloud communications industry.
“We are extremely excited about the synergies emerging out of this deal, that is, leveraging Route Mobile’s India success story to grow our communications business in USA and Europe markets, while also taking our affiliate company Telesign’s digital fraud prevention solution to enterprises in India,” Guillaume Boutin, CEO, Proximus, told ET Thursday.
Proximus has completed the acquisition of 57.56% of RML’s shares held by promoters for EUR 643 million (Rs 5,922 crore) in cash.
Further, it acquired 24.99% shares through a mandatory tender offer for EUR 292.8 million (INR 2,594 crore) taking its total shareholding in RML to 82.70%. This, however, will be brought down to 75% gradually as per Indian markets regulations.
For the CPaaS (communication-platform-as-a-service) business, RML and its sister companies Telesign and BICS will together become the third largest globally in terms of volumes and fifth largest in terms of revenue, the executive said.
“Communication volumes are expected to explode with generative AI powering platforms like WhatsApp, RCS, and even traditional channels such as contact centre services and with the combined access and reach of Proximus and Route Mobile, we are aiming to scale market dominance globally,” Boutin added.
Rajdip Gupta,
