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BSkyB to sell Easynet to Lloyds Development Capital
Wednesday 21 July 2010 16:24:10 by Sebastien Lahtinen

Following speculation on Monday about the possible sell-off of Easynet by BSkyB, the parties have today reached an agreement to sell Easynet Global Services and its subsidiaries to Lloyds Development Capital (LDC), a UK private equity firm for £100m, subject to regulatory approval and consultation with employees.

"This is an excellent opportunity for Easynet, its customers, and its staff. It provides us with additional capital to help fund the company's next phase of development and allows us to retain a business relationship with Sky. Since being part of the Sky family we've grown in stature in the UK and globally too. Our revenue has increased year on year, and we've continued to dominate the fast-growing segments of managed hosting, managed telepresence, Internet Protocol (IP) solutions and connectivity, whilst maintaining growth and innovation in our network services and products. We look forward to continuing this success under new ownership and building on our enviable reputation for excellent customer service and a global portfolio."

David Rowe, Chief Executive Officer, Easynet

As part of the deal, Sky will retain control over the network acquired from Easynet Group in 2005, Easynet Global Services will continue to have access to Sky's extensive network and BSkyB will continue to be a customer of Easynet. The move will result in Sky focussing its efforts within its natural consumer space whilst Easynet will be able to target business customers.


Posted by Dixinormous over 6 years ago
Cue loads of panic from UKOL customers thinking that they are going to be assimilated into Sky Broadband in 3... 2... 1...
Posted by tommy45 over 6 years ago
Really? but as more news filters through, things seem to have a positive feeling about them,for now at least
Posted by EnglishRob over 6 years ago
Okay maybe I missed something here, Sky keep the network, Easynet are renting capacity from Sky and Sky are Easynet customers?

Surely Sky don't need to be customers of Easynet now since they own the network. Or is it more of what other services Easynet offer?

Posted by Btcc22 over 6 years ago
I'm presume Sky keep the LLU infrastructure and Easynet keep the backbones which Sky will be using.
Posted by ETEE over 6 years ago
I think $ky need the $$$$. Otherwise why bother.
Posted by g-bhxu over 6 years ago
Sound to there's some Tory a**e licking going on here.

LDC is part of LloydsTSB that happens to be partly state owned
Posted by CaptainW over 6 years ago
@ETEE - Why would Sky need the money? Their cash flow and current market capitalisation is very healthy.

Looking at the agreement would leave things as:
Sky sell to domestic customer's and own the previous and existing network (LLU & backbone)
Easynet business services are now provided by the new Easynet company
The reason Sky will still use Easynet Global is for things like the HD hosting event from the US during the American Inauguration for example
Posted by CARPETBURN over 6 years ago
Hmmm i wont be panicing just yet but will be watching very carefully. I thought that banks and their groups were in financial merde. Always best to assume the worse and not the best from deals like this with quick PR spin thrown out there. If contract terms change, service seems to go down hill or prices start being played with then ill go.
Posted by AndrueC over 6 years ago
@CB:Lol. Our parent company just got sold to a private equity company. Over $1b and apparently underwritten by Goldman Sachs.

So I'm now owned by a bank :)
Posted by CARPETBURN over 6 years ago
Are you a Ukonline or Easynet Customer than AndrueC?? (Or am i missing something in that and you refering to another company?)
Posted by AndrueC over 6 years ago
Heh, I'm referring to my employer. Just responding to your observation about banks and how they can find money when they think they need it.
Posted by CARPETBURN over 6 years ago
Ah right gotcha now, was wondering for a moment there when you joined UKonline LOL thought i was missing something..... Oh and yep agreed banks in financial merde, we wouldnt know it would we.
Hope the buy out for your employer goes to plan and you and others dont face the chop.
Posted by AndrueC over 6 years ago
Thanks, we're probably fine. Tbh though although it's a bit ahead of plan I might quite like to cash in 21 years of service. Depends on the deal of course :)
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