PARIS, FRANCE: SPIE, the independent European leader in energy and communications services, has announced the acquisition of c.92% of ICG Group, a leading provider of telecommunication infrastructure in Germany.
The deal, valued at 9.1 times ICG Group’s 2023 earnings before interest, taxes, depreciation and amortization (EBITA), will allow SPIE to enter the market for 5G mobile networks and strengthen its position in the fibre networks, which are still underdeveloped in Germany compared to other European countries.
ICG Group, based in Leonberg near Stuttgart, offers turnkey solutions for both fibre and 5G networks, covering the entire value chain from planning to installation and maintenance. The company serves a diverse customer base of network operators, infrastructure providers and municipalities across Germany.
In 2023, ICG Group generated a revenue of c. 230 million euros with margins above 10%, in line with the sector average. The company employs about 720 highly skilled workers.
The acquisition is expected to boost SPIE’s earnings per share (EPS) by a mid-single digit percentage as soon as the first year of consolidation. The transaction will be financed with SPIE’s existing financial resources, without compromising its leverage ratio. The current management team of ICG Group will retain an 8% stake in the company and continue to lead its business development. The agreement also includes put and call options for the remaining shares.
Gauthier Louette, Chairman and CEO of SPIE, declared: “The acquisition of ICG Group enables SPIE to further strengthen its position as a leading player in the deployment of fibre networks and mobile telecommunication infrastructure in Germany, which are very strategic and rapidly growing markets. With its high growth perspectives and very strong level of profitability, we are convinced that the combination of ICG Group with SPIE will be highly value creative.”
Markus Holzke, CEO of SPIE Deutschland & Zentraleuropa said: ” We are very pleased to pursue the development of our activities in Germany. The acquisition of ICG Group will further reinforce our existing City Networks & Grids segment and we are delighted to welcome the Management and its highly skilled collaborators to further develop the business. With its experienced management team and its entrepreneurial approach, SPIE and ICG Group will be a perfect match.”
Vladimir Suznjevic, Managing Director of ICG Group: “We are convinced that in SPIE we have found the right partner to pursue our development as a leading provider of complex communication infrastructure solutions. With SPIE, we will continue to provide a secure home for all our employees. At the same time, we will bring our experience and expertise to further expand SPIE’s portfolio as a multi-technical service provider for its customers. We are looking forward to the future together!”
SPIE expects to close the transaction in Q2 2024, subject to customary closing conditions among which antitrust approval.
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