BT has reached a deal to sell its Irish wholesale and enterprise business to Enet and Magnet+ operator Speed Fibre Group for €22m.
The transaction is expected to be completed this year, subject to competition approval, and follows news of the agreed €59m sale of BT's Irish data centre business to Equinix.
BT Communications Ireland Ltd (BTCIL) comprises the group's domestic network infrastructure, more than 400 customers and associated staff 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.
The deal also includes a long-term agreement for BT and Speed Fibre Group to source connectivity for their respective customers from each other. The enterprise value of the put and call agreement for the acquisition of the share capital of BTCIL is €22m.
Speed Fibre Group is owned by specialist global infrastructure investor Cordiant Digital Infrastructure Ltd, and the acquisition is expected to enhance the group's standing as a provider of telecommunications infrastructure in Ireland.
With the acquisition, Speed will broaden its reach in the wholesale and business-to-business connectivity markets, and the group will integrate BTCIL's complementary capabilities and domestic customer base.
Speed currently employs approximately 190 people and has a customer base of more than 11,000. The group's annual turnover is in excess of €86m.
“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," said Peter McCarthy, CEO of Speed FIbre Group.
"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 bettxer serve our growing customer base.”
Steve Marshall, chairman of Cordiant Digital Infrastructure Limited, said: “This transaction is an important addition to our Irish platform, representing a significant step in our strategy to build scale in key geographies.
"BT Communications Ireland Ltd’s capabilities complement Speed Fibre Group’s existing operations, enhancing our ability to support the growing connectivity needs of Irish businesses.”
The sale is part of BT's ongoing realignment of its international business to focus on delivery of multi-cloud connectivity to multinational customers and large organisations.
BT will retain more than 400 employees in Ireland as well as connections to the group's global network infrastructure and propositions.
“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," said Bas Burger, CEO of business at BT.
"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.
Shay Walsh, managing director of BT Ireland, said: "We have transformed our operations in Ireland over the past eighteen months to position our various business units for future growth.
"This new chapter will see BT focusing on multinationals and large organisations in Ireland, with Speed Fibre Group as its wholesale network and national services partner.
"Through this transaction, I am confident that the complementary strengths of both entities will unlock new opportunities, drive innovation, and sustain long-term growth in the Irish telecommunications market."
For the first nine months of BT's financial year, the group reported a 3% decline in adjusted revenue to £15.3bn, with adjusted earnings rising 2% to £6.2bn.
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.
(Pic: Hollie Adams/Bloomberg via Getty Images)
