In the midst of a complex economic environment, Avatel Telecom has caught the attention of important players in the telecommunications sector. According to information provided by Bloomberg and other national media outlets, Telefónica and HIG Capital are among the interested parties looking to acquire the company, which could be valued at up to 700 million euros, including net debt.
New bidders for Avatel Telecom
Avatel Telecom, which recently announced an ERE that will affect 849 employees, representing 45% of its workforce, has attracted the interest of several bidders. The telecommunications multinational Telefónica and investment firm HIG Capital have shown interest in acquiring Avatel. However, the competition is fierce. PAI Partners and Searchlight Capital have been invited to participate in the second round of bidding, according to sources consulted by Bloomberg.
In addition, Inveready, another investment firm, is also considering joining a joint offer with one of the four main interested parties in Avatel. This wave of interest reflects the significant evolution that Avatel has undergone in recent years, transitioning from a small company on the Costa del Sol to becoming the fifth telecommunications operator in Spain.
A trajectory of growth and consolidation
Since 2016, Avatel has pursued an aggressive growth strategy through the acquisition of 155 smaller companies in the sector. This expansion has allowed it to consolidate and significantly increase its presence in the Spanish telecommunications market. However, the company has indicated that it is now entering a “phase of adjustment and consolidation” after this period of rapid growth.
Context of the ERE at Avatel
The news of the possible acquisitions comes just after Avatel announced an Expediente de Regulación de Empleo (ERE) that will affect nearly half of its workforce. On April 12th, the company informed unions of its intention to carry out a collective dismissal. This adjustment is part of its strategy to optimize operations and prepare for new challenges in the sector.
The future of Avatel
With a potential valuation of up to 700 million euros, the sale of Avatel could mark a significant milestone in the telecommunications sector in Spain. The entry of Telefónica or HIG Capital, as well as the interest of other major investors, could mean a new stage of development and expansion for Avatel.
The final decision on the purchase is still to be seen, and will depend on the negotiations and offers that are presented in the coming weeks. Meanwhile, the market continues to watch the movements of these telecommunications giants and the strategies they will implement to integrate and enhance Avatel in their corporate structure.