Italian ICT group Eutelia could become a takeover target for a new company called Cloud Italia, according to Il Mondo.
In a report dated 18 February, the newspaper wrote Mark De Simone, former head of Cisco and the brains behind the new project, has…
Italian ICT group Eutelia could become a takeover target for a new company called Cloud Italia, according to Il Mondo.
In a report dated 18 February, the newspaper wrote Mark De Simone, former head of Cisco and the brains behind the new project, has teamed up with a host of Italian and international financial, communications and consultancy experts including Booz Allen.
Negotiations are reportedly underway with Francesco Caio, the former head of Vodafone and Cable & Wireless who is now an investment banker at Nomura, who could become adviser and CEO of the new company. Other potential partners, meanwhile, include UniCredit and an unspecified international software firm.
The new company, which is reportedly planning to focus on the much hyped cloud computing trend, has indicated that it would need some E100m in investment for the takeover. Some of this would come from its partners and their connections to private equity and institutional investors, while Unicredit could presumably provide help on the lending side.
By 2015, Cloud Italia expects that in combination with Eutelia it would achieve a turnover of E238m, 30% of which would come from cloud computing.
Another possible bidder would be Italian ISP Tiscali, which sold its UK assets to Carphone Warehouse a couple of years ago.
Eutelia, originally part of the Edison utility group, was taken over by the Landi family before being combined with Freedomland, Bull Italia and Getronics, accumulating large debts in the process – which led to it being placed into administration. The healthy part of the business is now being restructured.
Eutelia closed 2010 with revenue of some E138m and an EBITDA of E5m. This year, it expects to turn over about E100m, with an EBITDA of E2m, about half of what it achieved in 2009.
The company’s main strong point is its fibre optic backbone. Of the company’s earnings, 35% come from wholesale, 32% from retail, 28% from prepaid overseas calling cards and 8% from premium services.
The Italian government was reportedly due to invite bids for Eutelia on February 20.
