Advisor to Telefónica Tech on the acquisition of Cancom UK&I
Telefónica Tech has agreed with Cancom Group to acquire Cancom UK&I for €398 MM. Telefónica Tech continues with its organic and inorganic growth plan, which is enabling it to consolidate its position as the leading company in digital transformation.
The deal, at a multiple of 13,5x EV/EBITDA 2021E, will strengthen the capabilities of Telefónica Tech's Cloud and Cybersecurity division in the UK and Ireland.
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 MM revenues in 2020, of which Managed and Professional Services represent more than 50% and are growing differentially. In 2021 Cancom UK&I will reach €190 MM of revenues, with an adjusted EBITDA 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.
This transaction reinforces the growth story of Telefónica Tech, whose revenues have grown by more than 25% in the first half of 2021 and above the sector average, as well as its positioning in one of Telefónica's four key markets, the UK (the other three being Spain, Germany and Brazil).
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