Sky Sells EasyNet for £100 million
BskyB (aka Sky) has confirmed that they are selling EasyNet Global Services, their business-to-business division of their telecommunications operations. The transaction will be to a management consortium that is backed by Lloyds Development Capital (LDC), which is a private equity firm.
However, this transaction is still subject to approval from regulators, as well as a consultation by a works council. When the transaction is completed, LDC will pay £100 million to Sky for the business.
The buyout is being led by EasyNet chief executive Davic Rowe and his team. Rowe says that this is a great opportunity for the company, its staff and its customers. It will provide them with more capital to aid in funding their next phase of development, he continued, and it also allows them to keep a business relationship with Sky.
As part of the deal, Sky will keep the UK network assets that is purchased in 2005 as part of the original buyout of EasyNet Group, for which they paid £211 million. Also under the deal, EasyNet Global Services will have continued access to the fibre network operated by Sky and will also still be a key supplier.
Sky chief financial officer Andrew Griffith said that the acquisition of EasyNet was an important part of Sky Broadband’s and Sky Talk’s early successes. While they will keep the UK network assets in order to support the growth of their residential customers, they will propose the exit of the B2B segment in the sale of the business on attractive terms and to a credible team, he added.