Satellite broadcaster BSkyB completed the sale of its Easynet business-to-business telecommunications unit for 100 million pounds ($153.9 million) to Lloyds Banking Group’s the private equity arm Lloyds Development Capital.
Global provider of managed solutions and business connectivity services Easynet, has announced its sale from BSkyB (Sky) to Lloyds Development Capital (LDC), the private equity arm of Lloyds Banking Group for £100 million.
Further exploiting its dexterity as an independent global provider, Easynet will continue with its strategy to deliver high quality, complex international managed networks and managed hosting services to businesses around the world. Chief Executive Officer, David Rowe, who founded Easynet in 1994, will remain in the role with the full backing of LDC.
The acquisition heralds a new chapter in Easynet’s history. From its founding in 1994, Easynet has been a leader in highly sophisticated managed networks and hosting, and since it joined the BSkyB family in 2006 it has grown by over 40 per cent.
David Rowe, CEO, said: “Our strategy has always been to take a pragmatic approach to the market: we follow our customers, understand their needs, and provide solutions that add value. Our tight focus on our customers will continue under our new ownership. LDC’s strategy is closely aligned to our business plan and this will allow us to take a longer-term view of the investments we make to give our customers competitive edge.”
David Molony, Principal Analyst at Ovum, said: “This is a characteristically dynamic deal (for the company) that introduced telcos to the idea that a customer service desk could be the key to retention and growth. Enterprise customers will be reassured by the move because it points to a focused growth and development strategy. Some managers in Easynet’s competitors’ global services divisions might be reflecting with envy on the independence and competitive agility that Easynet has won and which this deal celebrates.”
Easynet retains the International network and Data Centre assets and in the UK continues with an exclusive and long term relationship with Sky for the use of Sky’s access network. Easynet also retains the core IP infrastructure and network management functions responsible for routing traffic intelligently around customers’ networks.
Daniel Sasaki, Director, LDC, commented: “Easynet is a dynamic, profitable business which has enjoyed considerable success by providing highly innovative solutions that make its customers more competitive. We have made a long-term investment in the company as we believe there is considerable untapped global demand for its unique value proposition. We are looking forward to working with Easynet’s management team to help propel the business into a new phase of international growth.”
Watch Easynet CEO David Rowe discuss the implications of the acquisition at: http://www.easynet.com/gb/en/video/?PrimaryNavID=14&videoID=85
Easynet Global Services is a worldwide provider of managed network, hosting and value added integration services, such as Telepresence, to international corporate customers. The company has customers in 50 countries including Michelin, Newscorp, Tchibo, Transport for London, EDF, SAGE, Q Park and Bridgestone.
LDC (Lloyds TSB Development Capital) is the mid-market private equity arm of Lloyds Banking Group, and together with the management team it owns 100% of Easynet.
For more information visit www.easynet.com and www.easynetconnect.net and you can follow us on Twitter @easynet and Easynet | LinkedIn
LDC is the leading private equity company in the UK mid-market. LDC (Lloyds TSB Development Capital) is part of the Lloyds Banking Group and is authorised and regulated by the Financial Services Authority. It has completed over 400 investments and has ongoing interests in over 60 businesses in the UK. With fourteen offices LDC invests between £2million-£100million in MBOs, IBOs and Development Capital transactions in a broad range of sectors, including financial services, healthcare, industrials, IT & software, leisure & media, retail & consumer and support services. Recent transactions include 1st – The Exchange, Ansa / Independent Inspections, Cranswick Pet & Aquatics, Easynet, Modelzone, Nuclear Engineering Services Limited, Quantum Specials, and Snell Limited plus exits from ATP, Card Factory and Telecom Service Centres. For further information visit www.ldc.co.uk