Telefónica Tech acquires Cancom UK&I in £340M deal

Telefónica Tech is a Spanish company that intends to bring about a digital transformation. The company offers a wide range of services and integrated Technological solutions in Cybersecurity, Cloud, IoT, Big Data and Blockchain.

Acquisition of Cancom UK&I

Now, Telefónica Tech appears to be focused on continuing its organic and inorganic growth plan, which enables it to consolidate its position as a leader. It has agreed to acquire Cancom Group’s Cancom UK and Ireland subsidiary for €398 million (nearly £340 million).

The deal will strengthen the capabilities of Telefónica Tech’s Cloud and Cybersecurity division in the UK and Ireland. Cancom UK&I has 600 professionals joining the Telefónica Tech team, and a broad and strong digital services portfolio including professional services and managed services in advanced IT, cybersecurity and multi-cloud solutions.

So far in 2021, Telefónica Tech has announced the acquisition of Altostratus Cloud Consulting, a Spanish company specialized in multi-cloud services and Google Cloud Premier Partner for Southern Europe.

Telefonica Tech is expected to steadily grow at double-digit rates by leveraging more than 5.5 million B2B Telefonica Group customer base and reinforcing the current integrated value proposition across all markets as well as boosting sales specialists.

Why Cancom UK&I?

In January 2021, Cancom UK&I was formed after three acquisitions were completed in both the UK and Ireland by the CANCOM Group.

Cancom UK&I is a certified Microsoft Gold Partner for 9 competencies including Azure Expert MSP, CSP Direct, LSP, Surface Silver Partner and FastTrack. It has other relevant partnerships with leading technology vendors as well.

Cancom UK&I reached €155 million revenues in 2020, of which Managed and Professional Services represent more than 50% and are growing differentially. This deal reinforces the growth story of Telefónica Tech with revenues that have grown by over 25% in the first half of 2021 and above the sector average and as its positioning in one of Telefónica’s four key markets – the UK, Spain, Germany and Brazil.

José Cerdán, CEO of Telefónica Tech, said: “Having the Cancom UK&I talented team join Telefonica Tech, will strengthen our Cloud and Cybersecurity capabilities in the UK and Ireland, with a strong focus on Professional and Managed services, and combined with our value proposition and global reach allows us to position ourselves as the strategic partner for our B2B customers in their digital transformation strategy”

“I am really delighted that Cancom UK&I are becoming part of the Telefónica Tech family. This is a fantastic next step in our company’s growth. Telefonica Tech is a global tech powerhouse and we’re excited about what we will be able to deliver to our customers as Telefónica Tech in the UK&I. This is great news for both our customers and our employees” said Martin Hess, Managing Director Cancom UK&I.