Teleconnect has finalized purchase of the Madrid company Spacom, specialized in development of Internet products and services. The operation, valued at 350 million pesetas was performed through a share exchange, in which teleconnect ended up with the totality of Spacom in exchange for 10% of its capital, the latter passing into the hands of the Madrid founders.
Spacom was started in 1999 by Alfonso de Borbón, Jose Maria Fraile and Matias Cortés Elvira (who holds 60% of capital). In 2000 they invoiced 120 million pesetas and forecast closure of this year with sales of 150 million.
Teleconnect was founded by Nicholas Bruemmer – majority shareholder with 38% of capital – in 1999 and in July 2000 began activity lines: prepaid products, landline phones for residents and Internet for SMEs and independent professionals. It close the previous fiscal year with invoicing of 450 millions pesetas (2.7 million euros) and estimates that this year it will reach 3.200 (19.2 million euros). “Spacom is an ideal companion. They have state-of-the-art applications in Internet that the strategically important for our lauch”, Nicholas Bruemmer emphasized.
The island and Coast are territory that Teleconnect has chosen for its expansion. “They are a space that the large operators have not taken into account and that is where we have specialized”, Maria Fraile, responsible for market technology in the firm, emphasized. After eight months of activity in Málaga, this week the company begins operations in the Balearics, “where 800 customers have appeared spontaneously thanks to publicity inserted in the foreigh press on the Costa del Sol”, Fraile said.
Alicante and the Canaries are the next areas. Bruemmer admits that the forecast dates for the territorial expansion of the company have been postpone with the objetive of reaching a financial balance point in the fourth quarter of this year.