BT also agreed to pay Reuters any outstanding cash on Radianz’ balance sheet, net of working capital adjustments, by the completion date. Radianz provides private telecoms networks to banks and brokers.
The announcement comes after months of negotiations between BT and Reuters, which began last October. The new deal will see BT act as the network services supplier for Reuters.
Reports have suggested that the substantial contract signals BT’s desire to offset growing competition in its fixed-line telephone operations by establishing itself as a key global provider of network services, especially as sales are falling in fixed-line phone services.
The selling of unprofitable Radianz, meanwhile, has been seen as further evidence that Reuters is trying to offload its non-core operations to focus on its main business of selling news and data.
The latest acquisition follows BT’s purchase of Infonet, which provides services such as corporate networking and mobile security, in November last year, and the purchase of Italian telecoms operator Albacom in December.
