Digital Republic is a digital service provider that offers Internet of Things services to both commercial and personal customers. The company offers a range of mobile Internet tariffs for smartphones, LTE routers or trackers. Tariffs are always based on the speed.
Digital Republic, a provider of mobile virtual networks, will be acquired and integrated into the IoT sector by Swiss-based mobilezone. Mobilezone, an independent Swiss and German telecoms specialist, trades its registered share on the SIX Swiss Exchange. Mobilezone’s range of products includes all mobile phone models, as well as digital TV, Internet and landline and wireless telephony options from all providers.
Mobilezone’s spokeswoman said that the acquisition of Digital Republic would expand their range of products and services, while also strengthening their position as one of the leading providers of telecommunications. Digital Republic’s spokesperson stated that the company will also take advantage of mobilezone’s synergies to pursue opportunities in the Swiss telecom industry.
Digital Republic’s acquisition supports several strategic goals of the mobilezone group. Mobilezone expands its customer base through the new “Internet of Things” market. On the other hand, the service sector will increase its revenue by offering a wider range of services.
The package includes basic mobile 5G Internet, for home routers or digital nomads. It also includes full mobile phone subscriptions that include data consumption, voice calls, and roaming. The business also offers corporate clients scalable and adaptable options, as well as customised solutions for IoT devices. Digital Republic, a part of the mobilezone network will be led by the original founders.
A contract between the parties prevents the disclosure of financial details. The aim is to complete the transaction by January 2023. The purchase price is financed by own funds and credit lines that already exist. The Board of Directors intends to continue to adhere to its current dividend policy, which is to distribute between 60 and 75 percent of the net income to shareholders as dividends.
Any extra cash that is below the net debt/EBITDA of 1 ratio will be distributed as special dividends to shareholders or used for share buybacks. In 2023, the share-buyback program will be suspended from 2022-2025. The Annual General Meeting will recommend a dividend per registered share of CHF 0.90, up from CHF 0.84 the previous year.
