Feeds

Thus agrees to buy Your Comms and Legend

Someone had to

Intelligent flash storage arrays

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. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
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.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
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?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.