Nov 9, 2004 : BT Acquires Infonet for $965 Million

📅 November 9, 2004 - Internet, network services and Web hosting provider British Telecom (bt.com) announced on Monday that it has signed a definitive agreement to acquire Infonet (infonet.com), a provider of voice and data network services, for $965 million.

BT says it expects to derive significant cost savings form combining the two companies. Already identified actions are expected to reduce the annual cash costs of the combined businesses by $150 million in the third year following the acquisition. The first year is anticipated to be cash neutral.
BT said acquiring Infonet, with its significant presence in Europe, the Americas and Asia-Pacific, also increases BTs global reach and brings 1,800 multinational customers into its fold.
Infonet has reported average annual growth in core revenues of 11 percent over the past two years. The company said it will be cash flow positive by the end of the current financial year.
"This transaction is great news for Infonet's customers, employees and partners," says Jose A. Collazo, chief executive officer of Infonet. "Our combination with BT will improve our ability to supply mission-critical services to our customers, by bringing a commitment to the long-term development of IP-based services backed by financial strength and true global scale. While continuing to take full advantage of our existing services and delivery platform, our customers will also be able to access the whole breadth of BT's product and solutions capabilities."
The deal is subject to Infonet shareholder approval and customary regulatory requirements. BT said completion of the acquisition is expected for the first half of 2005.