Home » ISPreview UK News Archives »
BT Makes Official Cash Offer For ISP PlusNet
By: MarkJ - 16 November, 2006 (9:27 AM)

BT today announced it has made a recommended cash offer for PlusNet to the order of 210p per share, valuing the company at approximately £67m. The move confirms earlier reports:

The offer for PlusNet fits perfectly with BTís strategy of providing its customers with the most that broadband can deliver. Broadband is increasingly becoming more than just fast internet access and PlusNet has a strong reputation for both customer service and innovation.

Operating since 1997, PlusNet was listed on the Alternative Investment Market in 2004. It has grown rapidly during the last few years and now has close to 200,000 broadband customers as well as an additional narrowband customer base. If the offer is accepted, PlusNet will retain its brand and distinct identity. It will continue to operate from its base in Sheffield and Lee Strafford will remain its CEO. For the 12 months to 30 June 2006 the company had revenues of £41m, EBITDA of £7.5m and net income of £3.9m 1.

BT Retail chief executive, Ian Livingston said: ďThis offer makes great sense for BT. We already provide the UKís most popular and best-performing ADSL broadband service and this acquisition will ensure that even more people can enjoy our market-leading services. PlusNetís customers and employees will benefit from the combination of PlusNetís excellent platform and access to BTís resources and technology development.Ē

Lee Strafford, CEO of PlusNet said: ďI am pleased to announce BTís offer this morning. Whilst the PlusNet Directors continue to believe that PlusNet is a high quality business, our sector is consolidating and there are considerable benefits to PlusNet in becoming part of BT. BT recognises the importance of retaining PlusNetís identity and culture and I believe this will give rise to exciting opportunities for PlusNet, our customers and our employees.Ē

The directors of the company, having unanimously recommended the offer, have provided irrevocable undertakings to accept BTís offer.

PlusNet has also issued a press release of their own HERE. It's too early to be sure precisely what will change, although PlusNet's PR does offer a few hints:

This transaction will allow us to develop our business model, maintain our cultural approach and benefit from:
  • greater investment capability

  • access to new products and services including BTís WiFi Fusion and BT Vision propositions ; and

  • access to BT Retailís broadband network platform and the associated scale benefits.

BTís immediate plans are to continue to operate PlusNet as a separate entity within the BT group from its Sheffield offices. It is of great importance to BT to retain PlusNetís distinct identity and culture and for it to continue to trade under the PlusNet brand.

History - [News Archives]


Copyright © 1999 to Present - ISPreview.co.uk - All Rights Reserved (Terms, Privacy Policy, Links (.), Website Rules).