KPN sells Getronics Spain and Portugal to Tecnocom

December 20, 2007

1 Min Read

THE HAGUE, The Netherlands -- KPN announces that Getronics has today executed the final documentation in relation to the sale of the Getronics activities in Spain and Portugal to Tecnocom, a listed Spanish ICT services company. This completes the transaction announced by Getronics on 15 June 2007 and will allow Getronics and Tecnocom to create a partnership in the Iberian peninsula. Tecnocom acquires Getronics’ operations in Spain and Portugal for an enterprise value of EUR 87.5 million, taking into account an earn-out component. The total consideration has been paid for 60% in cash at closing and the other 40% will be deferred for approximately 9 months, and could either be paid in cash or Tecnocom shares. If the deferred payment is made in shares, Getronics will potentially obtain an equity stake of more than 10% in Tecnocom and will also get a seat in the Board of Tecnocom.

The combination will create a strong player in the Iberian market and leverages the extensive application services capabilities and resources of Getronics’ Iberian operations, as well as its capabilities in workspace management services. The combination will become the third largest ICT services provider in the Iberian market, with a leading position in the Iberian Financial Services sector. This is the first completion of a major disposal of a non core Getronics asset, following the acquisition of Getronics by KPN.

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