Cable & Wireless (C&W) has bought telecoms carrier Energis as it aims to knock BT off the number one spot.
The buy-out is an attempt to drive C&W’s desire to expand in the IP-based services market as the firm attempts to swells its blue chip and government client base.
C&W will pay £594m in cash and this figure could rise over the next three years to a potential £720m as the firm injects additional money into the business. The buy-out was also subject to a late spoiler bid by Thus, who launched an unlikely £600m offer with £200m in shares.
Francesco Caio, chief executive of C&W, announced: “Consolidation has been hanging around in the market and someone has to make the first move – we have done this.
“This is a good day for the telecoms business, we have to shake the sector not just watch it. This deal makes financial and strategic sense and this transaction opens up a gap between us and the rest of the industry.”
Cesar Bachelet, analyst at Ovum, did not feel that the move will affect the C &W indirect channel and said the firm intends to enlarge its overall customer base. “The acquisition has created a bigger player in the telecoms market and with BT being the leading telecoms provider in the UK, this will close the market space,” he said.
Bachelet added that C&W has strengthened it set-up over the last couple of years and feels that the UK has been core to this drive.
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