Proximus : Edpnet to continue its operations as independent entity within the Proximus Group

1. Proximus Group
2. News and media
3. 2023
4. edpnet

21 March 2023| Press Release

edpnet to continue its operations as independent entity within the Proximus Group

In the framework of the judicial reorganization procedure of edpnet, Proximus announces today that its offer to acquire the company has been validated by the Enterprise Court of Dendermonde. As a result, Proximus will acquire the activities and assets of Belgian edpnet nv and Dutch edpnet bv. This acquisition will enable Proximus to enrich its offering in the segment of tech-savvy residential customers and SMEs. Proximus aims to keep edpnet as a separate entity within the Group, ensuring maximal continuity for customers and employees.

edpnet is an independent operator with activities in Belgium and the Netherlands and has been a wholesale customer of Proximus for many years. It has grown to become the largest independent fixed internet player on the Belgian market, mainly appealing to the growing consumer segment of tech-savvy cord cutters and gamers, looking for high-quality product specifications (high internet speeds, extensive data volumes, …) at a favorable price. While focusing mainly on the consumer segment, it is also active in the small and mid-sized enterprises segment. Today, the company serves around 46,000 fixed internet and 13,500 mobile customers (excl. M2M).

In October 2022, edpnet filed for protection from its creditors. As key service provider and one of edpnet's main creditors, Proximus closely followed the evolution of the file. The court decision of 12 January 2023 to open a judicial reorganization procedure type 3, with the prospect of organizing a potential transfer of activities under judicial authority, led Proximus to introduce a binding offer of EUR 20.5 million. Throughout the procedure, Proximus has taken a constructive position, prioritizing continuity of service for end customers.

A strong niche brand with a unique positioning that fits into Proximus' multi-brand strategy

Based on the long history of collaboration between both companies in the framework of Proximus' open network strategy, Proximus is convinced it is the right partner to allow edpnet to continue its activities and serve its customers.

This acquisition allows Proximus to address market segments in which it still has growth opportunities. edpnet has independently grown into a strong brand with high customer satisfaction scores, uniquely positioned in the marketplace thanks to its compelling fixed and convergent offerings for the segment of technology-conscious value seekers. With a balanced geographical mix and a growing proportion of customers on fiber, the company has demonstrated its ability to build a loyal customer base and attract new customers in a specific market segment.

Proximus strongly believes that with the right operational and technical support and by seeking synergies and optimizations, this growth trajectory can be continued. edpnet's current product portfolio for the residential segment complements Proximus' existing brands and offerings well. Similarly, on the B2B market, the edpnet offering is a valuable addition for the Group to better meet the needs of small and mid-sized enterprises and further grow in this segment.

Ensuring short-term continuity and preserving edpnet's independence, positioning and culture

Following today's decision of the court, Proximus will acquire 100% ownership of the activities and assets of edpnet nv and edpnet bv. Careful attention will be paid to preserving the unique culture, independent spirit, and brand identity of edpnet as well as to ensuring a seamless continuation of the activities and uninterrupted service to customers.

Proximus envisions to keep edpnet as a separate entity within the Proximus Group, so that it can continue to offer its products and services independently, under the same conditions and name, while benefitting from technical and operational support from the Group. Proximus commits to preserving edpnet's company culture, ensuring the continuity for its employees and their wellbeing.

In the coming weeks, edpnet customers will be personally informed about the acquisition and practicalities to consider during the transition. In any case, all customers will retain their current services and benefits and be able to use Proximus' Gigabit networks, as well as take advantage of future Proximus innovations.

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