Cancom acquired by Madrid's Telefónica Tech for €398 million

Belfast IT firm Novosco, which was absorbed into Cancom in 2019, will now join the Telefónica Tech group.

GERMAN company Cancom, which acquired Belfast IT firm Novosco in a £70m deal less than two years ago, has sold its UK and Ireland business to Madrid's Telefónica Tech for €398m.

It means the company's 350 staff in Belfast are under new ownership for the second time in less than 22 months.

The October 2019 acquisition of Novosco saw the fast-growing Belfast IT firm absorbed into the Munich-based IT group's 3,500 workforce.

But in a deal confirmed on Thursday, Cancom has agreed to sell its UK and Ireland subsidiary to Telefónica Tech.

The move will see 600 staff move to the Spanish digital services group, including around 350 IT professionals in Northern Ireland.

The transaction is expected to be completed within the third quarter of this year.

Martin Hess, who heads up Cancom's operations in the UK and Ireland, described the deal as the next step in the company's growth.

“Telefónica Tech is a global tech powerhouse and we're excited about what we will be able to deliver to our customers as Telefónica Tech in the UK&I.

“This is great news for both our customers and our employees.”

Telefónica Tech's chief executive, José Cerdán, said: “Having the Cancom UK&I talented team join Telefónica Tech will strengthen our cloud and cybersecurity capabilities in the UK and Ireland, with a strong focus on professional and managed services, and combined with our value proposition and global reach allows us to position ourselves as the strategic partner for our B2B customers in their digital transformation strategy.”

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