Bouygues Telecom has announced its acquisition of La Poste Telecom, a leading mobile virtual network operator (MVNO) in France, for €950 million.
La Poste Telecom is a 51-49 joint venture between La Poste group and SFR. At present, La Poste Telecom is using SFR’s mobile network for offering its services.
This strategic move aligns with Bouygues Telecom’s strategy, aiming to bolster its mobile customer base. La Poste Telecom has 2.3 million mobile phone users on its network. The acquisition will also provide Bouygues Telecom with access to La Poste’s expansive distribution network, enhancing its market reach and service offerings.
Financial projections indicate that in 2023, La Poste Telecom is anticipated to generate approximately €300 million in sales with a workforce of 400 employees. Moreover, this partnership will facilitate La Poste Telecom’s continued expansion in the mobile sector while paving the way for the development of new fixed-line services to cater to evolving customer demands.
The transition of La Poste Mobile’s mobile customers to Bouygues Telecom’s radio network is slated to occur following the conclusion of the exclusivity period of SFR’s wholesale contract by the end of 2026.
Leveraging Bouygues Telecom’s robust radio network capacity, no additional investment will be required in the network infrastructure. However, integration costs (opex/capex) are earmarked for 2025 and 2026 to streamline the customer migration process, with expectations of customer migration by 2027.
Post-migration, the acquisition of La Poste Telecom is anticipated to contribute approximately €140 million in EBITDAa annually, commencing from 2028. The transaction is subject to consultation with employee representative bodies and is slated for completion by the end of 2024.
Looking ahead, Bouygues Telecom remains steadfast in its commitment to its strategic objectives, focusing on expanding its customer base, enhancing operational results, and bolstering cash flow generation.
Benoit Torloting, CEO of Bouygues Telecom, said: “Bouygues Telecom will increase its customer base and strengthen its position in both mobile and fixed services drawing on La Poste’s distribution network throughout the country.”
