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Telefonica, S.A.’s TEF digital business unit, Telefonica Tech, has secured a deal to acquire engineering company — Geprom. Digitization of the industrial sector is one of the Telefonica subsidiary’s major priorities with a broad portfolio of new-age services, including the application of artificial intelligence (AI) and cloud technologies.
Given Geprom’s strength in robotization and logistics, the acquisition will reinforce Telefonica’s digital capabilities, making its business more competitive and sustainable. The transaction will also boost Geprom’s transition toward manufacturing digitization or Smart Factory, backed by additional capabilities and services.
Based in Spain, Geprom is an innovative software company that specializes in the development and integration of avant-garde technological solutions for both large corporations and small and medium-sized businesses. These high value-added solutions are particularly designed for Industry 4.0 where industrial automation holds extreme importance.
The engineering company primarily focuses on addressing the accretive requirements of digitization, irrespective of the industry and production levels. A well-known name in industrial programming, automation and cloud computing, Geprom caters to various sectors ranging from automotive and textile to petrochemical and smart city. It is a strategic partner of Gefasoft GmbH.
Both the entities had inked a global commercial agreement in December 2020. They extended their collaboration to primarily focus on capitalizing on best-in-class technologies like the Internet of Things, Big Data and AI to enhance productivity and reduce operational overheads while facilitating real-time decision making with seamless logistics.
Apart from reinforcing the joint portfolio with blockchain and predictive maintenance, the agreement enabled the companies to streamline day-to-day operations in the connected industrial environment on the back of advanced technologies. The companies aim to develop new business models and ensure the highest quality of manufactured products while digitizing warehouse processes in a secure and sustainable manner.
With the acquisition of Geprom, Telefonica will be able to enhance its extensive value proposition and in-depth experience in domains such as infrastructure, connectivity and communications, while bolstering innovation and digital transformation of the tech industry. The buyout is likely to push Telefonica Tech’s organic and inorganic growth plan.
Telefonica Tech has been on a buying spree in 2021. It acquired Cancom UK&I (now Telefonica Tech UK&I) €398 million and Altostratus, a Google Cloud Premier Partner for southern Europe. It even collaborated with a cloud services company, acens, to complete the value proposition of IT services for small and mid-sized enterprises. With Telefonica Group’s more than 5.5 million B2B customers, its digital business unit expects to continue its momentum in the long run with double-digit growth.
Telefonica provides a comprehensive suite of service platforms for fast go-to-market launches. Its IoT connectivity platform has been designed to address dynamic business requirements and enable a cost-effective solution to improve business productivity. It is capitalizing on the opportunities in the digital world through several growth strategies to enhance long-term prospects while experiencing healthy traction in the smartphone market.
Telefonica currently has a Zacks Rank #3 (Hold). Its shares have gained 5.6% compared with the industry’s growth of 5.5% in the past year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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