Telecom Italia snaps up MVNA Noverca for about €4.5M

Italian flag

Telecom Italia acquired 100 per cent of Noverca, which claims to operate the only mobile virtual network aggregator (MVNA) platform in Italy, from the Acotel Group at a price based on an enterprise value of €4.5 million ($4.9 million).

The final price will be adjusted by the value of Noverca’s net debt at Oct. 31, provisionally valued at about €500,000, and will be verified by Telecom Italia within the next 60 working days.

The move means that the Italy-based operator, which sells fixed and mobile services under the TIM brand, has gained access to a platform that will enable it to support the launch of mobile virtual network operators (MVNOs) on a more rapid basis.

Indeed, Noverca has developed what it described as a “ready-to-use service” for its MVNO customers that comes with “competitive set-up and operating costs”. The company also uses TIM as the host network.

Noverca has previously operated its own MVNO business, but in January 2015 it agreed to transfer more than 170,000 customers to TIM and closed down its retail operation.

Acotel said it is actively supporting TIM in the process of integrating the Noverca platform. It added that it would receive up to a further €500,000 provided that Noverca’s platform achieves the stated performance indicators. Furthermore, €450,000 will be withheld for 27 months in an escrow account as a guarantee of its commitments.

Acotel, which was originally established to provide value-added mobile services, has since branched out into other areas and geographies. For example, it provides energy management services and products and security systems under Acotel Net; web and mobile services for the global market under Acotel Interactive; and programmatic advertising services under Bucksense.

The MVNA business fell within the Acotel TLC unit, which also provides SMS information services for corporate customers.