Víctor Rodríguez, president and co-founder of Avatel, has consolidated his control over the telecommunications operator after acquiring a majority stake in the company. With this move, Rodríguez has gone from owning 25% to controlling 60% of Avatel’s shares, while Inveready, led by Josep Maria Echarri, and other partners have retained the remaining 40% of the capital. This transaction, which strengthens Rodríguez’s position at the helm of the company, seems to indicate a possible strategy of consolidation or expansion within the competitive Spanish telecommunications market. According to reports from economic media such as Expansion, which highlighted in its print edition that “the president of Avatel buys the operator for 500 million.”
Avatel: growth and expansion in rural areas
Avatel has managed to stand out in the sector as the fifth telecommunications operator in Spain. This growth has been the result of a strategy based on the acquisition of small local operators, mainly in regions far from major urban centers. Its focus has allowed it to offer services to over 1,000 localities and cover nearly 3.5 million households in areas such as Levante, Andalusia, and Castilla-La Mancha.
In mid-2023, Avatel reported revenues of nearly 157 million euros, and a significant increase in its adjusted EBITDA, reaching over 76 million euros, 36% more than the same period the previous year. The company has invested around 650 million euros in the acquisition and integration of about 200 small operators in the last three years, which has been key to its expansion.
Restructuring and business optimization
Despite its notable growth, Avatel has made strategic decisions to optimize its operation. Among the most notable is the sale of its data center division to funds Teras Capital and Intermediate Capital Group (ICG). Additionally, the company implemented an ERE that initially would affect 850 employees, but was ultimately reduced to 674 workers, reflecting the company’s effort to adjust its workforce and focus on its core operations.
Market interest and competition
The sale of a significant portion of Avatel has sparked the interest of various important players in the sector. Inveready, which has experience from its participation in the growth of MásMóvil, has become Rodríguez’s main partner in this new stage. Although other international funds like HIG Capital, PAI Partners, and Searchlight have dropped out of the bid, the operation continues with an initial valuation close to 700 million euros, although the final price is estimated to be lower.
Avatel has positioned itself as an attractive company for operators looking to expand their presence outside major urban centers, a trend that is gaining strength in the current telecommunications market in Spain.
A constantly competitive sector
The telecommunications sector in Spain is undergoing a transformation. With competitors like Telefónica, which showed interest in acquiring Avatel, and Vodafone, recently acquired by Zegona, the industry is in a consolidation process. On the other hand, the merger of MásMóvil and Orange, creating the giant “MasOrange,” has added pressure on smaller operators like Avatel, who continue to expand in rural areas.
However, competition remains fierce in the world of virtual mobile operators (OMV) and fiber. Grupo Aire (Aire Networks), for example, is one of Avatel’s direct competitors, with a significant presence in the residential fiber market and small cable companies scattered throughout Spain.
Future perspectives
With this new ownership control, Víctor Rodríguez and his team face the challenge of further consolidating Avatel as a key player in the Spanish market while competing with industry giants. Expansion beyond major urban centers will continue to be one of the company’s main bets, as it has already demonstrated its ability to grow steadily in this area.
The future of Avatel lies in continuing its strategy of acquisitions and expansion while optimizing its operations and strengthening its presence in the competitive landscape of telecommunications in Spain.