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RSS feedsBT announced today that it will pay £80m to increase its stake in Italian business telco Albacom to 100 per cent.
The UK firm will acquire the 74 per cent that it does not already own from its three joint venture partners ENI, BNL and Mediaset.
Taking over the Albacom joint venture which it established in 1995 forms part of BT's strategy to establish a pan-European presence to service multi-site organisations.
Together with its recently announced acquisition of Infonet, BT said the integration of Albacom will allow it to boost the services it can offer to corporate and public sector customers in Italy and to international businesses with operations in Italy.
Under the terms of the transaction, BT has agreed with ENI, Mediaset and BNL to manage a "substantial part" of their communications services needs for at least the next five years. The total annual value of these contracts is expected to be at least €150m.
Andy Green, chief executive at BT Global Services, said: "This integration will be good for Albacom, good for BT and good for our Italian customers."
In consideration for the 74 per cent of Albacom not already owned, BT will pay to the other shareholders a minimum of €116m. Of this, €55m will be deferred for five years and may be increased if Albacom's profits in 2008/09 exceed certain target levels.
See also:
Telco promises .Net-based software and service packages for SMEs 01 Dec 2004
BT Entertainment to promote on-demand music, gaming, TV and movies 29 Nov 2004All Telecoms
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