Italian company Tessellis has announced plans to acquire Go Internet, aiming to bolster its presence in the business services sector. The deal, initially delayed, has now met all necessary conditions and is set to proceed with Tessellis acquiring over 30% of Go Internet following a Reserved Capital Increase scheduled for the end of the month.
Go Internet, a provider of fiber and fixed wireless services through its subsidiaries in Italy, may not be widely known. Similarly, Tessellis is better recognized under its former name, Tiscali, which remains a prominent retail brand in Italy. Tiscali has been undergoing significant transformation, moving away from its traditional telecommunications roots to establish itself as a digital company. This shift began with its merger with fixed wireless operator Linkem in 2022, leading to the rebranding of the group to Tessellis last year.
Last month, Jefferies Financial Group disclosed its indirect controlling stake in Tessellis by acquiring the majority of voting rights in Opnet, which holds 59.26% of Tessellis’s share capital.
Under the leadership of Davide Rota, founder of Megabeam Italia (which became Linkem), Tessellis is navigating this new phase of its evolution. Rota emphasized the importance of the Go Internet acquisition for their B2B business development, expressing confidence in the Go Internet management’s capability to enhance their business offerings.
While Tessellis has not detailed the specific role Go Internet will play in its B2B strategy, the rationale behind the acquisition remains clear: Tiscali, now Tessellis, needs to expand its business services to gain a foothold in the market. Currently, none of Tessellis’s companies rank in the top for broadband and ultrabroadband lines in the business sector according to Italian regulator Agcom. Tiscali holds a minor share in the residential market and the FTTC and FTTH markets, lagging behind larger competitors.
Despite a stronger position in fixed wireless access with a 19% market share, Tiscali faces challenges in this small, declining market. Go Internet, although a modest player with €5.1 million in revenues and €0.6 million in earnings as of mid-2023, offers Tessellis a strategic opportunity to focus on the business services and public administrations market, marking a step towards their growth ambitions.
