Thus makes a move for two rivals

3 Feb 2006

UK corporate telco Thus has struck deals to acquire two smaller rivals for a total of GBP70 million (USD124 million) and announced plans to sell its ISP Demon Netherlands to focus on its UK operations. Thus said it was buying corporate telco Your Communications from United Utilities for an initial sum of around GBP58.8 million in an all share transaction, a price far below the GBP200 million valuation placed on the company last year. Thus also agreed to buy corporate ISP Legend for around GBP11.5 million in cash; the deal will be funded by a placing of 67.4 million of its own shares (equal to 5% of its share capital). ‘Taken together, these steps will create a stronger, more focused participant in the UK business telecoms market, with the financial resources, scale, product set and customer base to continue the company’s growth path,’ Thus said in a statement.

United Kingdom, Thus