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July 2, 2010updated 12 Apr 2017 4:21pm

Econocom in talks to buy ECS Group

Socit Gnrale (SG) is in negotiations with business technology services provider Econocom, over the possible sale of the banks technology finance and services subsidiary, ECS Group Econocom has so far pitched its bid for the group at 210 million, and will finance this through 120 million of acquisition debt financing, 30 million of Econocom share issued to Socit Gnrale, 50 million of bridge financing (to be reimbursed with a later equity raise) and 10 million of cash from its own balance sheet.

By Fred Crawley

Société Générale (SG) is in negotiations with business technology services provider Econocom, over the possible sale of the bank’s technology finance and services subsidiary, ECS Group.

With business across 17 countries, including Europe, the US, Africa and China, ECS reported a consolidated turnover of €840 million in 2009, as well an EBITDA of €28 million.

Econocom has so far pitched its bid for the group at 210 million, and will finance this through €120 million of acquisition debt financing, €30 million of Econocom share issued to Société Générale, €50 million of bridge financing (to be reimbursed with a later equity raise) and €10 million of cash from its own balance sheet.

It is planning to raise some of this finance from banks BNP Paribas, Fortis and ING.

The acquisition, if successful, would create a group with total revenue of €1.6 billion and some 4,000 staff, in which Societe Generale would hold a nine percent stake. In addition, SG would continue to provide refinancing for the group.

Jean-Louis Bouchard, the founder of both ECS and Econocom, and Econocom’s current chairman, commented: “By combining the ECS and Econocom teams, we could form the leading European group of ICT infrastructure management, independent from manufacturers and operators, with the ambition to

become the number one mobility services provider.”

Fred Crawley

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