BSkyB (Sky) has reached an agreement over the proposed sale of its business-to-business telecommunications operation, Easynet Global Services, to Lloyds Development Capital (LDC).
LDC will pay Sky £100 million for the business on completion of the transaction. LDC, which is fully funded by the Lloyds Banking Group, is backing current Easynet CEO David Rowe and his management team.
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Under the proposal, Sky will retain the UK network assets that it acquired as part of the original acquisition of Easynet Group in 2005. As part of the proposed sale, Sky and LDC will enter into a long-term supply agreement to grant Easynet Global Services continued access to Sky’s fibre network, which continues to support the fast-growing Sky Broadband and Sky Talk services. Easynet will also continue to be a key supplier to Sky.
Andrew Griffith, Sky’s Chief Financial Officer, said: “The acquisition of Easynet was central to the early success of Sky Broadband and Sky Talk. Whilst retaining the UK network assets to support the continued growth of our residential customers, we propose to exit the B2B segment with the sale of the business to a credible team and on attractive terms.”
Peter Brooks, Managing Director, LDC London , adds: “Easynet is a great example of LDC’s approach to TMT investments. Leveraging our sector knowledge and deliverability as an investor, we seek to back best-in-class management teams. Easynet provides innovative services to multinational clients across the attractive data networking and managed hosting sectors. Management consistently deliver industry leading levels of service whilst generating strong financial returns. We look forward to supporting David and his team as Easynet begins its next phase of development.”
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