Feeds

Thus agrees to buy Your Comms and Legend

Someone had to

Providing a secure and efficient Helpdesk

Thus, the Scottish telco behind the Demon ISP, has finally confirmed plans to buy Your Communications (YC) and Legend Communications after being linked to both companies for months.

Announcing a shake-up the telco says will bulk up the business and deliver cost savings, it also says it plans to flog its Demon Netherlands business so that it can concentrate on the UK.

The acquisition of YC and Legend - which sees Thus expand its position as an alternative carrier for business customers - is also set to generate more than £25m in savings, although the firm has yet to say whether these "operational cost synergies" will include job losses. Thus has so far failed to return a call requesting comment about the future of jobs at Thus, YC and Legend.

YC is an alternative carrier for business customers and the public sector providing services predominantly in the north west of England. As part of the deal to acquire YC, Thus is to give parent company United Utilities (UU) a stack of shares worth around £58.8m. In return, UU gets a 22.5 per cent stake in the enlarged group.

Legend, the Lancaster-based ISP and VoIP outfit which was hit by increased competition and bad debts, is to be bought for £11.5m.

Thus chairman Philip Rogerson says the deal will create a "larger, stronger and more focused participant in the UK telecommunications market".

"The acquisition is part of a trend towards consolidation in our industry that, we believe, offers the potential to create a more sustainable industry structure and improve returns. The trend towards consolidation coincides with decline in demand for traditional telecommunication services and an increase in demand for more innovative, next-generation services," he said.

If all goes to plan both deals should be completed within the next few weeks. ®

Beginner's guide to SSL certificates

More from The Register

next story
Scrapping the Human Rights Act: What about privacy and freedom of expression?
Justice minister's attack to destroy ability to challenge state
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Hey Brit taxpayers. You just spent £4m on Central London ‘innovation playground’
Catapult me a Mojito, I feel an Digital Innovation coming on
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
EU probes Google’s Android omerta again: Talk now, or else
Spill those Android secrets, or we’ll fine you
prev story

Whitepapers

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.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.