Proximus Group, Belgium’s largest telecommunications company, has announced the acquisition of Mobile Vikings, a youth-oriented mobile virtual network operator (MVNO), from DPG Media for $158 million.
In its report, Proximus stated that Mobile Vikings, which employs around 80 people, would act as a separate entity if the transaction were to be completed, as it is subject to approval by the Belgian Competition Authority. The transaction, which is expected to close next year, will give the current Belgian company around 335,000 additional customers. Proximus would also acquire Jim Mobile, which is part of the Mobile Vikings entity, as part of the transaction.
According to the Belgian company, acquiring the Mobile Vikings was in fulfilment of its strategy up to 2022, which aims to open up opportunities in additional market segments and optimize its position in the residential sector. In purchasing Mobile Vikings, the company considered factors such as network leadership, partnership, customer satisfaction and net advertiser score, and opex reduction by increasing automation and simplifying internal processes. Proximus Group aims to operate as a local digital enterprise, including becoming IT legacy-free by 2025.
It is expected that in 2020 Mobile Vikings will earn just over €50 million in revenue and €15 million in EBITDA. The company is known as a pioneer in offering large data packages in Belgium, working together with retailers and providing customers with cash-back incentives for online purchases. Their credit can be used to purchase additional services or pay for deferred subscriptions.
Proximus Group CEO Guillaume Boutin, said: “My first priority will be to preserve and further develop the identity and market positioning of Mobile Vikings, in order to ensure that this acquisition perfectly complements our existing brand portfolio. All of them are different, but very relevant in their respective segments.”
Proximus stated that the procurement will allow it to target a contrasting market segment to the main Proximus and Scarlet brands, thus increasing its multi-brand position in the Belgian market. In addition, Proximus offers services in Luxembourg under the Tango and Telindus brands, as well as in the Netherlands as Telindus.