UK satellite broadcaster BSkyB has completed the sale of its B2B telecoms business Easynet to UK-based LDC, the private equity arm of Lloyds Banking Group, for £100m.
David Rowe, CEO and founder of Easynet, said: “Our strategy has always been to take a…
UK satellite broadcaster BSkyB has completed the sale of its B2B telecoms business Easynet to UK-based LDC, the private equity arm of Lloyds Banking Group, for £100m.
David Rowe, CEO and founder of Easynet, 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.”
Speaking to TelecomFinance earlier this summer, Daniel Sasaki, the director that sourced and executed the deal, said Easynet would be used as a growth vehicle, possibly with targets larger than its own size.
“We will be taking an opportunistic approach, focusing on expanding our footprint in North America and adding existing businesses in Western Europe that have complementary activities”, he said.
Future acquisitions, he continued, would be financed with a debt/equity combination rather than loans or Easynet’s balance sheet
“We have a good track record of buying companies, some of which end up costing more than the value of the original acquisition”. An example of this took place in 2008, when LDC portfolio company Pro-Bel, a broadcasting technology company acquired for £11m in an MBO, merged with Snell & Wilcox, which Advent had paid £22m to acquire in a separate MBO.
Former Merrill Lynch telecoms banker Tom Wells at Arma Partners advised LDC, while BoA Merrill Lynch advised Sky, the report added.
