Equistone borgs Easynet, MDNX in double-slurp
Layoffs likely in the new year
Lloyds Development Capital is getting out of Easynet, with Equistone to be announced as the buyer for most of the company later today (excepting its operations in Germany). Easynet will at the same time acquire UK integrator MDNX, according to a tip-off from a Reg reader.
LDC bought into Easynet in 2010, acquiring it from Sky for £100m.
The Register has sighted a letter from Easynet chairman and CEO Greg Clarke to BSB's CEO Jeremy Darroch, advising of the M&A activity and assuring BSB that the new entity will “continue to provide an excellent hosting platform to Sky News Arabia”.
Once the transaction is completed, the letter states that MDNX's Mark Thompson will be CEO of the new group, while Clarke will remain as chairman.
The letter says the merger “will provide significant mutual business benefits”, with MDNX getting a basis for offshore expansion, while Easynet gets broader customer reach in the UK.
Easynet Germany will be retained by its current owners to focus on its e-commerce platform.
The Register's informant claims that the new business will announce redundancies on January 3, 2014. ®