BSkyB divests business to business unit

22 Jul 2010

British broadband provider BSkyB has confirmed that it is selling business to business (B2B) telecoms unit Easynet to Lloyds Development Capital (LDC), a private equity house backing Easynet’s current management. According to the Guardian the deal is worth approximately GBP100 million (USD152 million), less than half of the GBP211 million BSkyB spent on acquiring the company back in 2005. Under the terms of the deal BSkyB will, however, retain the Easynet fibre network and local loop unbundled (LLU) infrastructure, while Easynet will continue to use its current infrastructure, albeit under a long term supply agreement between the two companies. Commenting on the development Andrew Griffith, BSkyB’s chief financial officer, noted: ‘The acquisition of Easynet was central to the early success of Sky Broadband and Sky Talk … While 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.’

United Kingdom, Sky