MASMOVIL

Spain’s fourth telecommunications operator, sold in 2020 for €5,800M in the largest private equity deal in the country’s history.

Platform
Venture
Status
Exited
Investment
2010 – 2020
Sector
Telecommunications
  • 30 x

    Money Multiple

  • 58 %

    TIR

  • € 1.5 M

    Inveready investment (2010-2013)

  • € 5,800 M

    Valuation at exit

MasMovil is a Spanish telecommunications operator with an integrated offering of fixed and mobile telephony, broadband and television. Its model is built on a multi-brand strategy that positions a specific brand for each customer segment, combined with an aggressive low-cost bundling policy.

During the investment period, the company grew from just over 100,000 customers to more than 11.5 million, reaching revenues of over €1,700M and EBITDA of €650M in 2020.

Investment thesis and involvement

Inveready entered MasMovil in 2010, when the company was an emerging operator in the Spanish market. The investment thesis was based on the potential of a low-cost fourth operator in a consolidated market, and on the quality of the management team to execute a growth strategy through sector consolidation and wholesale agreements.

The position was held throughout the reverse merger with Ibercom, the transformational acquisitions of Yoigo and Pepephone, the move to the Mercado Continuo, entry into the IBEX 35, and the final takeover bid by the KKR, Providence and Cinven consortium.

Milestone timeline

2010

Inveready enters with a €1.5M investment

2014

Reverse merger with Ibercom and listing on the MAB. Acquisitions of Xtra Telecom and Happy Móvil

2016

Acquisition of Yoigo and Pepephone. MasMovil becomes the fourth national operator.

2017

Move from the MAB to the Mercado Continuo

2018

Entry into the IBEX 35 and first leveraged-finance market issuance of €1,900M

2020

Takeover bid by the KKR, Providence, Cinven and other long-standing shareholders consortium. Valuation of €5,800M and delisting

Outcome / Current Status

In 2020, a consortium formed by KKR, Providence, Cinven and other long-standing shareholders launched a friendly takeover bid that valued the company at €5,800M and delisted MasMovil from the Spanish stock market.

To date, the deal remains the largest private equity transaction completed in Spain. For Inveready, it represented a 30x return on the original investment.