Spanish telecommunications provider MasMovil Ibercom has reached a preliminary agreement with UK-based The Phone House Holdings to acquire business-oriented Spanish operator Xtra Telecom. No specific financial details have yet been disclosed, but MasMovil has confirmed that it will be paying less than 6 times Xtra Telecom’s EBITDA to acquire 100 percent of the share capital. Xtra reported sales of EUR 78.2 million and an EBITDA of EUR 3.8 million for the 2013-2014 financial year. The purchase of Xtra Telecom follows MasMovil Ibercom's announcement in May that it would proceed with a EUR 24.5 million capital hike to finance its mergers and acquisitions strategy, having already acquired wholesale telecoms services provider Quantum Telecom in April.
The company also revealed that it is to leave Madrid’s MAB alternative stock exchange, the transparency of which has been called into question following the collapse of Wi-Fi provider Gowex, to trade on the official stock exchange. MasMovil Ibercom said the move was part of its strategic plan and represented “a natural evolution of the company due to its market capitalisation level.”
