Feeds

Thus agrees to buy Your Comms and Legend

Someone had to

Boost IT visibility and business value

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. ®

Build a business case: developing custom apps

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
prev story

Whitepapers

Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.