Telia Company has acquired 100 percent of Nebula Top, a Finnish provider of cloud services to small and medium-sized enterprises (SME) and Small Office, Home Office (SoHo) customers. It is paying EUR 165 million on a cash and debt-free basis to main owner Ratos and other, minority owners.
Nebula Top was founded in 1997 and offers automated and standardised cloud infrastructure services. Its 145 employees serve a customer base of approximately 44,000 who generate 90 percent subscription-based recurring revenues.
In 2016, Nebula reported net sales of EUR 35.1 million and an adjusted EBITDA of EUR 13.5 million. Based on its 2016 results, the purchase price corresponds to an EV/EBITDA multiple of 12.8 times, not considering synergies. Telia expects to generate synergies above EUR 10 million within three years from cross-sales as well as production cost savings. In 2018, Telia will open one of the largest open data centres in Finland.
The deal is subject to approval from the Finnish Competition and Consumer Authority and is expected to be completed in the third quarter of 2017.
