Sky confirms Easynet sell-off
Management taps private equity cash
And lo, it came to pass. Sky has announced it will sell Easynet to private equity house Lloyds Development Capital, which will back its current management.
The deal is vauled at £100m, about half what Sky paid for Easynet in 2005. However, the Murdoch empire will retain the Easynet network and LLU infrastructure, which enticed it in the first place.
Staff numbers will be unaffected by the buyout, and Easynet will continue to use the fibre network it built, under a long-term supply agreement. Sky will become an Easynet customer.
Easynet CEO David Rowe said: "This is an excellent opportunity for Easynet, its customers, and its staff. It provides us with additional capital to help fund the company's next phase of development and allows us to retain a business relationship with Sky."
The sell-off makes sense for Sky, which has little interest in competing in the business networking market. ®