BT has announced that it has reached an agreement for the sale of its Irish wholesale and enterprise business unit to Speed Fibre Group.
The transaction is expected to complete this year, subject to competition approval.
The planned sale will include BT’s domestic network infrastructure, over 400 customers, and associated teams supporting wholesale and business enterprises. It does not include BTCIL’s customer base of multinationals, large Irish organisations, the Emergency Call Answering Service, associated employees, and the recently divested data centre business (subject to regulatory approval).
The transaction also comprises of a long-term agreement for BT and Speed Fibre Group to source connectivity for their respective customers from each other. BT said the enterprise value of the put and call agreement for the acquisition of the share capital of BTCIL is €22 million.
Speed Fibre Group, which includes Enet and Magnet+, is owned by Cordiant Digital Infrastructure Limited. This acquisition would broaden Speed Fibre Group’s reach in Ireland’s wholesale and business-to-business connectivity markets. It will also enhance the group’s ability to deliver advanced connectivity solutions by integrating BTCIL’s capabilities and domestic customer base.
Peter McCarthy, CEO, Speed Fibre Group, said, “We are thrilled to announce that BT Communications Ireland, which includes wholesale and enterprise connectivity customers, will become part of Speed Fibre Group, marking an exciting milestone in our shared journey.
“This acquisition enables us to deliver even greater value to our customers by expanding our range of connectivity solutions. It’s a positive development for the Irish market, providing us with the scale and capabilities to better serve our growing customer base.”
Bas Burger, CEO, Business, BT, added, “Today’s announcement is another key milestone in focusing our international business on what it does best: providing secure multi-cloud connectivity to large organisations globally and in Ireland.
“Our Irish wholesale and enterprise business unit, which has been a leading alternative provider for more than 30 years, will enter a new era with Speed Fibre Group. We are confident that Speed Fibre Group will continue to deliver exceptional service to customers, and we look forward to working together with them as our future partner in Ireland.
BT added the sale is part of the ongoing transformation of its international business, focused on delivering secure, multi-cloud connectivity to multinational customers and large organisations in Ireland and around the world.
Post-transaction, BT will continue to have a presence in Ireland, with over 400 employees, offices in Dublin and regionally, and connections to BT’s global network infrastructure and propositions.
BT was advised on the transaction by Citi, PWC, and Simmons & Simmons. Cordiant and Speed Fibre Group were advised by McCann Fizgerald, PwC, and Matheson.