Route Mobile embarks on a new strategic direction by becoming a part of the Proximus Group
This will help the company expand its global footprint and product portfolio.
Route Mobile Limited (Route Mobile), a global player in Communications Platform as a Service (CPaaS), has now become a part of the Proximus Group, a provider of digital services and communication solutions operating in Belgium and international markets, through a strategic acquisition by the latter.
In July 2023, Proximus Group signed a definitive agreement with the founding shareholders of Route Mobile to acquire 57.56%[1] of Route Mobile through Proximus Opal[2] for INR 59,244 million (EUR 643.0 million[3]) cash consideration, which corresponds to a price per share of INR 1,626.40[4]. Some of the founding shareholders of Route Mobile subsequently committed to reinvest EUR 299.6 million in Proximus Opal, resulting in a stake of 12.72%, expected to be completed in the next few weeks.
Over the past years, Proximus Group already built up a significant presence in the CPaaS and digital identity markets. The complementary expertise and global reach of Route Mobile (a leader in CPaaS) and their US-based affiliate – Telesign (leader in Digital Identity), will allow to reap the benefits of scale, accelerate growth as a truly worldwide group and generate shareholder value.
Following receipt of regulatory clearances and finalization of the MTO process, the transaction has been completed today. The MTO stake, coupled with the shares acquired from the founding shareholders, brings the total shareholding of Proximus Opal in Route Mobile to 82.70%[5].
A strategic direction for global expansion
With this acquisition, Route Mobile has now become part of the Proximus Group, which becomes one of the world’s largest CPaaS players by messaging volume. This is a strategic direction for Route Mobile, which will help in entering mature markets like the USA and Europe, expanding product portfolio and unlocking identified synergies with Telesign.
Rajdip Gupta will continue as the Managing Director & Group CEO of Route Mobile and will also spearhead the CPaaS business, globally.
Talking about this development, Guillaume Boutin, Chief Executive Officer, Proximus, said, “Route Mobile is an exciting new addition to the Proximus Group’s family of international companies, which includes Telesign and BICS. This expansion enhances our CPaaS capabilities, completes our geographical reach and aligns with our expectations of creating substantial value. It’s a strategic move that we believe will contribute positively to Proximus’s risk profile and support our goals for sustainable growth and cash flow. I really look forward to embracing this new phase in our strategic development.”
Rajdip Gupta, Managing Director & Group CEO, Route Mobile Limited, said, “Route Mobile completes 20 years of its establishment this year. It has been a remarkable journey from Bootstrap to IPO to a Profitable Unicorn. This development takes us one step further to our goal of becoming a $1 billion revenue company”. He also said, “We look forward to working with Telesign and creating a global leader in digital communications and digital identity within the Proximus Group.”
About Route Mobile Limited (www.routemobile.com) (BSE: 543228; NSE: ROUTE)
Established in 2004, Route Mobile Limited (“RML”) is a cloud communications platform service provider catering to enterprises, over-the-top (OTT) players, and mobile network operators (MNOs). RML’s portfolio comprises solutions in Business Messaging, Voice, Email, SMS filtering, analytics, and monetization. RML has a diverse enterprise client base across various industries, including social media companies, banks and financial institutions, e-commerce entities, and travel aggregators. RML is headquartered in Mumbai, India, with a global presence in Asia Pacific, the Middle East, Africa, Europe, and the Americas.
Additional Resources
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About Proximus Group
Proximus Group (Euronext Brussels: PROX), headquartered in Brussels, is a provider of future-proof connectivity, IT and digital services, operating in the Benelux and global markets. The Group is actively engaged in building a connected world and in ensuring the trustworthiness, security and sovereignty of digital services, to the benefit of society.
Proximus has the ambition to build the #1 gigabit network for Belgium and plays a central role in creating inspiring digital ecosystems, while fostering an engaging culture and empowering ways of working. Building upon these strengths, Proximus aims to contribute to an inclusive and sustainable digital society, delight customers with an unrivalled experience and achieve profitable growth both locally and internationally to deliver long-term value for stakeholders.
In Belgium, Proximus’ core products and services are offered under the Proximus, Mobile Vikings, Scarlet and Proximus NXT brands. The Group is also active in Luxembourg (Tango and Telindus Luxembourg) and in the Netherlands (Telindus Netherlands). The Group’s international carrier activities are managed by BICS, a leading international communications enabler, one of the key global voice carriers and the leading provider of mobile data services worldwide. With Telesign, the Group also encompasses a fast-growing leader in authentication and digital identity services, serving the world’s largest internet brands, digital champions and cloud native businesses.
With 11,654 employees, imbued with Proximus’ Think Possible mindset and all engaged to offer a superior customer experience, the Group realized an underlying Group revenue of EUR 6,042 million end-2023.
For more information, visit www.proximus.com & www.proximus.be.
[1] On a fully diluted basis, Taking into account evolutions in the total number of shares since July 2023, this corresponds to 57.71% of the current total of shares.
[2] Proximus Opal is a subsidiary of the Proximus Group holding 100% of Telesign and following this acquisition also the majority stake in Route Mobile
[3] At an exchange rate of 0.0108578 EUR/INR.
[4] Based on the 10-day volume-weighted average price (VWAP) of Route Mobile of INR 1,626.40.
[5] On a fully diluted basis. As a result, the public shareholding in Route Mobile falls below the minimum level required as per Indian regulations, i.e., 25% of the aggregate shareholding. Proximus Opal will ensure that it satisfies this requirement within 12 months in order to hold a stake of maximum 75% in Route Mobile.
