Madrid-based information global consulting and technology company Indra has launched a voluntary tender offer (VTO) for 100 per cent of the share capital of Tecnocom, a Spanish listed ICT firm with presence in Iberia and Latin America, with an aim of creating a leader in IT Services in the local market, it says.
Indra has announced it has subscribed irrevocable commitments with Tecnocom’s shareholders representing 52.7 per cent of the share capital. The company will pay €4.25 per share, with a mix consideration of cash (60 per cent) and Indra’s shares (40 per cent) valued at €9.8461, it says. The deal is expected to provide ‘major value creation’ for Indra shareholders and revenues annual synergies of more than €40m, it thinks as according to Indra, the transaction will increase its position in the IT services market, in particular across the financial services sector, and will help gain extra exposure to the private sector.
Additionally, the client bases of the two companies are highly complementary, which will offer more potential for cross-selling and up-selling to its current clients, and consolidate its position in large accounts. Tecnocom, which has 80 per cent of its staff based in Spain, has also a presence in Spain, Portugal and across nine countries in Latin America where it offers its payment systems solutions to local banking industry. Indra also hopes that Tecnocom’s solution will strengthen its own proprietary solutions and digital-focused offering.
The settlement of the transaction is expected in the second quarter of 2017.
“The deal is underpinned by a strong strategic and industrial rationale, as well as by significant synergy potential, resulting in double-digit EPS accretion on Indra’s shares from 2017, excluding implementation costs. Together with Tecnocom, Indra will create the leader in IT services in Spain. Tecnocom’s integration with Indra will improve our operational leverage and scale, and strengthen our position in core markets with high growth potential, both in IT as well as in other industries, bringing strong revenue growth potential throughout cross-selling and upselling of our existing product offerings,” says chairman and CEO of Indra, Fernando Abril-Martorell.