KPN has agreed a deal to divest its international wholesale business iBasis to Tofane Global for an undisclosed fee.

France-based Tofane was founded last year by Alexandre Pébereau, a former CEO of Orange’s carrier division, and said it planned to grow by acquiring or forming strategic partnerships with multiple players in the international wholesale market.

iBasis, the third largest international data traffic provider in the world, is its first acquisition.

The US-based business saw sales decline by 30 percent in Q4 2017 and by 19 percent to €705 million for the whole of last year, as it suffered from what KPN said was price pressure and lower volumes in the international wholesale voice carrier market.

However, EBITDA rose by 20 percent in Q4 and by 4.3 percent to €24 million in the full year.

[Read more: KPN hits out at regulation as Q4 profits slump]

Tofane said it believed economies of scale could be found by creating a business that was independent of operators and offered a broader and more global digital offer.

iBasis will continue to deliver international voice termination and data services to KPN on completion of the deal.

Tofane Global CEO Pébereau, who has also previously served as Managing Director of Maroc Telecom, said: “iBasis, one of the leaders in the carrier industry, is the ideal first acquisition to serve our strategy of consolidating the international carrier services market as an independent player.”

Tofane is backed by financial companies Ciclad and Trocadero Capital Partners.

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