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News

mobilezone acquires Digital Republic and enters IoT market

Friday 23 December 2022 16:32 CET | News

Switzerland-based mobilezone has announced taking over the mobile virtual network operator Digital Republic and thus entering the IoT market. 


mobilezone is an independent Swiss and German telecoms specialist whose registered shares are traded on the SIX Swiss Exchange. Its offer includes a complete range of mobile phones and tariff plans for mobile and landline telephony, digital TV, and Internet from all providers. 


Aim of acquisition

According to a mobilezone representative, with the acquisition of Digital Republic, they are adding a new business area to their portfolio and at the same time consolidating our status as a provider of a comprehensive range of telecommunications services. A Digital Republic representative adds that they will make use of the many synergies with mobilezone for the joint opportunities in the Swiss telecom market.

The takeover of Digital Republic contributes to several strategic focal points of the mobilezone group. On the one hand, mobilezone is penetrating the new business area of ​​services relating to the "Internet of Things" and thus opening up new customer groups. On the other hand, the range of services will be expanded and the recurring income from the service business will be expanded.

mobilezone has announced taking over the mobile virtual network operator Digital Republic and thus entering the IoT market.

Fully digital business model

Digital Republic specialises in a digital offering for private and business customers based on the Internet of Things. The company offers various tariff plans for mobile Internet for cell phones, tablets, LTE routers, or trackers. The tariffs are always graded according to speed.

The offer includes complete mobile phone subscriptions with data use, telephony, and roaming, as well as simple mobile 5G Internet for the router at home or digital nomads. The company also offers flexible and easily scalable offers for corporate customers as well as tailor-made solutions for their IoT devices. Digital Republic will continue to be run by its original founders within the mobilezone group. 


Details about acquisition

Both parties have agreed not to disclose the financial details of the transaction. Completion is planned for early January 2023. The purchase price is financed from own funds and within the framework of existing credit lines. The Board of Directors still intends to maintain the existing dividend policy and to return 60 to 75% of net income to shareholders in the form of dividends.

Additionally, excess capital below a net debt/EBITDA of 1 will be returned to shareholders via special dividends or share buybacks. The share buyback program 2022 to 2025 will be suspended for the year 2023. A dividend of CHF 0.90 (previous year: CHF 0.84) per registered share will be proposed at the Annual General Meeting on 5 April 2023.

 


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Keywords: IOT, acquisition, partnership, transactions
Categories: Payments & Commerce
Companies:
Countries: Switzerland
This article is part of category

Payments & Commerce

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