In an MBO, senior managers currently within C&W’s northern european business have formed a company called IP-eYe to buy the domestic businesses in the Netherlands, Belgium, Sweden and Russia. IP-eYe will target national and multinational businesses, offering hosting, network integration and data services.
Under the terms of the deal, customers taking C&W’s domestic services will be served by IP-eYe, while those using Cable & Wireless’s multi-regional services will continue to be served by C&W. Ip-eYe will also distribute Cable & Wireless products in its own markets. No figure was put on the deal, but C&W said that Ip-eYe would take over assets valued at 2m euros ($2.2m).
Meanwhile, Swiss telco Smart Telecom SA is to buy Cable & Wireless’s domestic business in Switzerland. The assets being taken over are valued at 300,000 euros ($327,000).
C&W said the disposals are part of a strategy announced in November 2002 to focus on serving multinational enterprises and service providers in continental Europe, and to withdraw from domestic-only services.
After the sales, it will retain network and business operations in Brussels, Amsterdam, Copenhagen, Stockholm, Moscow and Switzerland. Robert Drolet, C&W’s CEO continental Europe, said the sales of the businesses are expected to be the first of a series of transactions across Europe that will allow it to provide a higher level of service to its target customers.
Source: Computerwire
