Feeds

C&W wins mating dance with Energis

Now plans to go toe-to-toe with BT

Secure remote control for conventional and virtual desktops

Cable & Wireless claims it will be able to reduce its reliance on BT’s infrastructure after sealing its acquisition of rival telco Energis yesterday.

The company will pay £594m in upfront cash for Energis, with up to £80m more in cash or shares three years after the deal is completed. C&W will also inject £35m into the Energis business, to cover short-term working capital requirements, which it expects to recover within a year.

Energis boss John Pluthero will head the combined UK business, and he will also join the C&W board. At the other end of the personnel scale, the combined firm will cut 700 jobs group by March, 2008.

C&W’s bid, announced on Friday, had a deadline of 5.00pm on Monday. Some Energis shareholders had been holding out for more, while Thus Plc revealed early yesterday that it too was interested in buying the company.

However, C&W clearly convinced the 75 per cent of Energis shareholders it needed by the time the deadline came round.

C&W seemed at pains to reassure the world that it was not wearing rose-coloured spectacles when it decided to take on Energis.

“We are realistic about the short-term prospects of the combined business. The transaction will not alter the fundamental trends affecting legacy services of continued pricing pressure and a high level of competition,” it said.

But, it said, “additional scale will allow us to further reduce unit costs to mitigate this pricing pressure… and, in the mid-term it will drive better returns on our strategic investment.”

C&W said the deal will allow it to reposition itself as “the alternative to the UK incumbent”. In a customer FAQ it claimed that customers want a competitor that can consistently compete toe to toe with BT, and the combined company will do this. At the same time, it said, it will have a “less BT-reliant infrastructure.”®

Secure remote control for conventional and virtual desktops

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
10 ways wire data helps conquer IT complexity
IT teams can automatically detect problems across the IT environment, spot data theft, select unique pieces of transaction payloads to send to a data source, and more.
5 critical considerations for enterprise cloud backup
Key considerations when evaluating cloud backup solutions to ensure adequate protection security and availability of enterprise data.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?