BT Group UK Sells US Government Contracting Subsidiary to TSCTI

The UK telecoms and broadband giant, BT Group, has today continued to reduce their international operations by announcing the complete sale of US government contracting subsidiary, BT Federal Inc., to 22nd Century Technologies, Inc. (TSCTI) – a public-sector IT systems integrator – for an undisclosed sum.

The transaction will expand TSCTI’s managed network services capabilities, including coverage across all 50 states of the USA, with BT Federal’s telecommunications and networking expertise. But for BT, this move marks yet another milestone on their road to pursuing a more UK-focused strategy (i.e. exiting many of their international / global businesses).

The telecoms giant said it would also allow BT International, now a standalone unit, to build on its position in the market as it serves the needs of multinational customers and aims to become a global leader in secure multi-cloud connectivity. “BT International will continue to have a strong presence in the US with regional offices and employees based in New York, Dallas and Reston,” said the announcement.

Bas Burger, CEO of BT International, said:

“Today’s announcement is another milestone in delivering on our strategy to focus our international business on what it does best: providing secure multi-cloud connectivity to large organisations globally. Our BT Federal unit, which has been a leading provider of services to US federal agencies, will enter a new era with 22nd Century Technologies. We are confident that 22nd Century Technologies will continue to build on the excellence and commitment of BT Federal to the US government sector.”

Satvinder Singh, President of 22nd Century Technologies, said:

“This acquisition is a growth catalyst for us, our customers, and the agencies we have yet to serve. The expansion of solutions and reach allows us to bring more innovation and reliability to a wider set of federal missions that depend on secure, high-performance network infrastructure.”

Both organisations said they were “committed to ensuring a seamless transition for employees, customers and partners, with no immediate changes to ongoing operations“. The transaction was cleared by the US Federal Communications Commission (FCC).