Here's what the Route Mobile-Proximus deal will look like

Belgium-based Proximus Group, a provider of digital services, communication and ICT solutions in Belgium and the international markets, has signed a definitive agreement to acquire a majority stake in Route Mobile.

Proximus Group, through its entity Proximus Opal, will acquire the entire 57.56 percent stake from Route Mobile's promoters, in a deal valued at Rs 5,922 crore. This is the third transaction in the Communications Platform as a Service (CPaaS) space in recent times.

Post this transaction, Proximus Opal will make an open offer to acquire another 1.64 crore shares or 26 percent of the expanded voting share capital from the public shareholders of Route Mobile.

Proximus is also the holding company of Telesign, which connects, protects and defends the digital identities of global enterprises. The combined entity of Route Mobile and Telesign is expected to have an annual revenue of €900 million. Post this transaction, the Proximus Group will become the third-largest player in the CPaaS space. Route Mobile's CEO Rajdip Gupta will continue to execute his current role and also be involved in the CPaaS activities of the group post the transaction.

Some of the founding shareholders of Route Mobile will be reinvesting a sum of €299.6 million to acquire a non-controlling, minority stake of up to 14.5 percent in Proximus Opal, post this transaction. The reinvestment values Telesign at €1.4 billion. Clear Bridge Ventures LLP, who will be acquiring up to 14.5 percent stake in Proximus Opal, is an entity of Route Mobile's promoter group.

"The partnership with Telesign paves the way for Route Mobile to become one of the global CPaaS leaders and achieve a billion-dollar annual revenue run-rate much sooner than the anticipated 3-4 years timeframe," Route Mobile CEO Rajdip Gupta was quoted as saying.

Annual run-rate operating profit synergies that will be realised three-years post the closing of the transaction, are expected to be at least €90 million, which will be realised by both Route Mobile and Telesign.

Route Mobile's geographic footprint in the Indian Subcontinent, Africa, Asia-Pacific and Latin America is said to complement Telesign's presence in Europe and North America. The combined entity will have customer coverage of over 200 countries and territories.

After having gained as much as 8.2 percent post the announcement of the deal, shares of Route Mobile have given up all the gains and are currently trading 2 percent lower at Rs 1,594.05.