CANCOM divests UK and Ireland business and realizes book value gain of approximately €225 million

CANCOM SE / Keyword(s): Mergers & Acquisitions/Sales
CANCOM SE: CANCOM sells its commercial activities in the United Kingdom and Ireland and realizes an accounting gain of approximately 225 million euros

29-Jul-2021 / 00:31 CET/CEST
Disclosure of privileged information according to. in Article 17 MAR of Regulation (EU) No 596/2014, transmitted by DGAP – a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

CANCOM SE: CANCOM sells its commercial activities in the United Kingdom and Ireland and realizes an accounting gain of approximately 225 million euros

Munich, Germany, July 28, 2021 – CANCOM SE’s Board of Directors today signed a definitive agreement regarding the sale of the subsidiary CANCOM Ltd. at Telefonica TECH. The transaction follows a strategic review announced on May 25, 2021. As a result, CANCOM is divesting all of its business operations in the UK and Ireland. The transaction values ​​CANCOM Ltd. at an enterprise value of nearly €400 million, which corresponds to a transaction multiple of 15.8x (Enterprise Value/EBITDA 2020A). CANCOM will realize an accounting gain of approximately €225 million from the transaction, which will be included in CANCOM Group net income for 2021. Upon closing of the transaction, CANCOM SE will receive cash proceeds of approximately €390 million euros.

CANCOM SE’s board of directors expects the transaction to close in the third quarter of this year. CANCOM intends to reinvest the proceeds primarily in acquiring businesses in its core regions of Germany, Austria and Switzerland.

Following the transaction, CANCOM Ltd. will be reclassified as discontinued operations in the CANCOM Group’s financial information. Accordingly, earnings figures are adjusted for earnings contributions from CANCOM Ltd. for the current year and financial year 2020. Based on the new adjusted comparative figures for 2020, the board of directors of CANCOM SE confirms the guidance for the CANCOM group published in the Annual Report 2020.

Notifying company:
CANCOM SE, Erika-Mann-Strasse 69, 80636 Munich, Germany
ISIN DE0005419105, Frankfurt Stock Exchange (MDAX, TecDAX, Prime Standard)

Contact person / notifier:
Sebastian Bucher, Head of Investor Relations
+49 (0)89 540545193
[email protected]

Note on alternative performance measures (APM):
Enterprise Value (EV): Value of the enterprise. Corresponds (simplified) to the sum of the market value of equity and net financial debt.

EBITDA and EBITA: for definition, see CANCOM SE 2020 Annual Report page 16.

Information and explanations from the issuer to this news:

About CANCOM
As a digital transformation partner, CANCOM guides organizations into the digital future. CANCOM helps customers simplify complex enterprise IT and increase business success through the implementation of modern technologies. In order to comprehensively meet the IT needs of businesses, organizations and the public sector, CANCOM provides end-to-end bespoke IT solutions from a single source.

The CANCOM Group’s range of IT solutions includes consulting, implementation, services and management of IT systems. Clients benefit from extensive expertise as well as a holistic and innovative portfolio that covers the IT requirements necessary for successful digital transformation. As a hybrid IT integrator and service provider, the Company offers an integrated range of services and solutions, including enterprise solutions and managed services, such as cloud computing, analytics, enterprise mobility , IT security, hosting and offers as a service.

With more than 4,000 employees worldwide, the internationally active CANCOM Group and its efficient partner network ensure market presence and proximity to customers in Germany, Austria, Switzerland, Belgium and the United States. United. The CANCOM Group is led by Rudolf Hotter (CEO) and Thomas Stark (CFO). The company is headquartered in Munich. CANCOM has annual sales of approximately €1.3 billion and its parent company, CANCOM SE, is listed on the MDAX and TecDAX of the Frankfurt Stock Exchange (ISIN DE0005419105).

July 29, 2021 CET/CEST DGAP distribution services include regulatory announcements, financial/corporate news and press releases.
Archive at www.dgap.de