PwC supports Proximus Group’s successful acquisition and integration of Route Mobile

In 2023, Proximus Group initiated its three-year “bold2025” strategic cycle with the ambition to capture greater growth both in its domestic market and abroad. Having already acquired full ownership of Telesign, a CPaaS company focusing on fraud prevention, and international carrier BICS, the Group was looking to accelerate its growth and secure its position in the CPaaS world. Following successful talks with Route Mobile, a global company specialised in CPaaS services based in India, Proximus Group entered into a definitive agreement to acquire a majority stake in the firm in July 2023, with PwC by its side.

Route Mobile is a listed company of Indian heritage, making the transaction complex for the Belgian operator from a cultural and regulatory point of view, with particular regulations coming into play with regards to ownership. “There were a lot of unknowns and it was important to be assisted by people who understand the specificities of the situation and the culture and are able to negotiate effectively with an Indian counterpart,” explains Mark Reid, Finance Lead with Proximus Group. Proximus Group opted to work with PwC based on the Group’s prior good experience with our firm. “The quality of the people is second to none with PwC, from the Partners down to more junior staff. The involvement of a senior team throughout this process was very much appreciated. PwC’s an international brand with a global presence. We were able to access local expertise in India, via the Belgian firm, which meant that when we had complex questions in a geography we weren’t familiar with we could get solid answers,” he adds.

Says Marc Formisani, Proximus Group Head M&A, “PwC did more than just look at the risks. The team made sure we understood the risks clearly and advised on how to protect ourselves, and as a good deal advisor, they also looked for opportunities in terms of synergies and growth. PwC made sure that by the time we were ready to sign the final deal, Proximus Group would be ready to fully integrate Route Mobile from finance and tax perspectives. The team gave us real peace of mind.”

The acquisition was completed in May 2024 with Proximus Group acquiring a majority stake (83%) in Route Mobile, making it little more than a year between the agreement and final deal. “When it comes to an acquisition, you sometimes need things to move very quickly. PwC showed immense flexibility and adaptability during the process with a real ‘can-do’ attitude,” notes Mark Reid. “And the process doesn’t always run as smoothly as you’d like. PwC was with us the entire way, even when tough decisions had to be made and enabled us to make good decisions quickly,” he says. 

Impressed by PwC expertise and global reach during the acquisition and due diligence phase, Proximus Group didn’t hesitate to call in the team for support with the integration. “PwC was involved in all the due diligence and had supported us well during the negotiations so it was logical to remain with the team for the integration. It meant we could leverage everything that they’d learned during this stage too,” enthuses Marc Formisani. The integration of Route Mobile marks a pivotal moment for Proximus Group’s international ambitions and adds the necessary scale to unleash the full potential of the Group’s global communications activity.

The completion of the Route Mobile transaction’s a major enabler for Proximus Group's international strategy and is expected to generate substantial value, improve the overall risk profile of the Group and drive profitable growth and cash generation. “We’re very proud of what we’ve been able to achieve. It’s the biggest transaction in Proximus Group’s history and most complex, being multi-geographical, multicultural and multifaceted. It not only puts Proximus Group on the map as an impressive growth story, but Belgium too, and we’re thankful with PwC’s deal support during this journey” concludes Mark Reid.