BSkyB has confirmed it is to sell the business-to-business division of its telecommunications operation, Easynet Global Services, to a management consortium backed by private equity company LDC.
On completion, LDC will pay Sky £100 million (€119m) for the business, subject to regulatory approval and a works council consultation. The management buyout (MBO) is being led by the current Easynet CEO David Rowe and his management team. LDC is backed by the Lloyds Banking Group.
Sky will retain the UK network assets that it acquired as part of the original acquisition of Easynet Group in 2005 when it paid £211 million for the business.
Under the sale agreement Easynet Global Services will have ongoing access to Sky’s fibre network, which continues to support the Sky Broadband and Sky Talk services. Easynet will also continue to be a key supplier to Sky.
“The acquisition of Easynet was central to the early success of Sky Broadband and Sky Talk. Whilst 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,” said Andrew Griffith, Sky’s Chief Financial Officer.
As of March 31, 2010, BSkyB had 2,505,000 broadband customers and 2,230,000 on its Sky Talk telephony package.