BT offloads Spanish unit to Portobello Capital

17 Dec 2019

BT has reached an agreement for the sale of its Spanish managed ICT services business – including its domestic network infrastructure – to funds managed by Portobello Capital. Assets included in the transaction include a 5,600km owned and leased optical fibre network, fully owned city fibre networks in Barcelona and Madrid and three data centres. BT will retain a presence in Spain with offices in Madrid and Barcelona, access points to connect to its global network and its cyber-security operations centre. Through a wholesale agreement, BT will continue to have access to the Spanish infrastructure. The Spain-based business will also become a reseller of BT’s global products under a resale agreement. The transaction is subject to regulatory approval and is expected to complete in the first half of 2020.

The Spanish business, which will be led by members of the current management team, currently provides networking services to around 600 major enterprises, and generated GBP230 million (USD307 million) revenue in the 2018/19 financial year (pro forma).

Bas Burger, CEO of BT’s Global division, commented: ‘Today’s announcement is another key milestone in the execution of our strategy to make Global a more agile and customer focused business.’

Spain, BT Espana, BT Global Services, BT Group (incl. Openreach)