NetServices (www.netservicesplc.com) has this morning announced it has sold its consumer broadband wholesale business to 186k Ltd. for approximately £1 million.
This includes transfers of contracts of 174 of its consumer broadband resellers covering around 23,000 end user connections, a number of BT Central Pipes and five of its employees. NetServices will retain the 23 business-to-business resellers although 186k will take over the management of these in return for a revenue share.
"I am delighted that we have been able to reach agreement with 186k for the transfer of these contracts so that our resellers can continue to have their specific needs met by a business specialising in the broadband arena. For NetServices to execute our strategy in converged business solutions, we require the focus of single business direction we achieve through this divestment. This deal ensures our legacy resellers are serviced as well in the future as they have been in the past whilst enabling us to move NetServices forward to it's next chapter."Mark Vickers (Chief Executive), NetServices plc
The transferred contracts represent approximately £4.5m of NetServices' consolidated revenues for the year ended August 2006. NetServices explains this move will allow it to focus on its core strategic objectives of focussing on higher margin business-to-business services, in particular converged voice and data opportunities.