Telefonica to acquire Cancom UK&I for managed services

Telefónica Tech agreed with Cancom Group to acquire Cancom UK&I for EUR 398 million euros valued at a multiple of 13.5x EV/OIBDA (based on 2021E). 

Telefónica Tech said the deal will strengthen the capabilities of its Cloud and Cybersecurity division in the UK and Ireland. Cancom UK&I has 600 professionals, joining the Telefónica Tech team, and a broad and strong digital services portfolio including professional services and managed services in advanced IT, cybersecurity and multi-cloud solutions.

Cancom UK&I is a certified Microsoft Gold Partner for 9 competencies, including Azure Expert MSP, CSP Direct, LSP, Surface Silver Partner and FastTrack and it also has other relevant partnerships with leading technology vendors. Cancom UK&I reached EUR 155 million in revenues in 2020, of which Managed and Professional Services represent more than 50% and are growing differentially. Cancom UK&I will reach EUR 190 million of revenues in 2021 with an adjusted EBITDA margin of 15.4% and revenues related to Managed Services and Professional Services revenues project differential growth rates of 20% and 26% CAGR18-21, respectively.

José Cerdán, CEO of Telefónica Tech, said: “Having the Cancom UK&I talented team join Telefonica Tech, will strengthen our Cloud and Cybersecurity capabilities in the UK and Ireland, with a strong focus on Professional and Managed services, and combined with our value proposition and global reach allows us to position ourselves as the strategic partner for our B2B customers in their digital transformation strategy".