Proximus rebrands global arm amid international pushProximus rebrands global arm amid international push

Belgian incumbent Proximus will integrate its international division under one umbrella by creating Proximus Global. According to the group, the new unit is valued at around €3.1 billion (US$3.6 billion) in equity value.

The new entity will comprise carrier BICS, digital identity firm Telesign and communication platforms-as-a-service (CPaaS) company Route Mobile, which will now all fall under the overarching Proximus Global brand. Route Mobile is the latest addition to Proximus' international portfolio – its acquisition was completed in May.

In financial terms, the deal will be structured as a transfer of 100% of shares in BICS to Proximus Global, against shares of the newly created company. Clear Bridge Ventures, which is the investment vehicle of Route Mobile founders, the Gupta family, will retain 8.7% of shares in Proximus Global with Proximus owning the rest.

The move is not surprising. In an interview earlier this year, Proximus CEO Guillaume Boutin told Light Reading the international division is lacking a single brand and integrated product suite as it seeks to better capture synergies. This may indicate the direction of travel for the newly minted Proximus Global.

Big ambitions

The new unit will steer the activities of BICS, Telesign and Route Mobile, while the organizational structure will be "simplified and clarified, harmonizing roles and responsibilities across the three entities." Boutin will act as the CEO of Proximus Global, while continuing to act as group CEO.

Related:Proximus eyes escape abroad from low-growth telco reality

Given the different product suites and core markets at each of the companies, the three companies present a good opportunity for cross selling, Boutin told Light Reading earlier this year.

International activities are a big priority for Proximus as it seeks to tap into the higher-growth opportunity it presents, he added. While the group's domestic telco business is capex-intensive and unlikely to register significant growth, there is a greater potential in the international segment, according to Boutin.

Nevertheless, while domestic revenues grew by 1.5% in Q3 to €1.2 billion ($1.3 billion), they dropped by 2.3% to €468 million ($491 million) at the international division on a comparable basis (including pre-acquisition performance of Route Mobile). EBITDA was up by 4.2% for the international arm, while growing 1.3% domestically.