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(Alliance News) - Telecommunications company BT Group PLC has entered into exclusive negotiations to sell its domestic operations in France to Computacenter PLC, the companies said on Tuesday.
Under the proposed agreement, FTSE 250-listed computer services firm Computacenter will take over the management and maintenance of IT and network infrastructure, as well as networking and related professional services. The transaction is subject to consultations with works councils over a minimum period of two months an is expected to complete by the end of 2020.
BT will continue to serve multinational businesses and organisations in France and will retain access to its global network as well as a cybersecurity operations centre. Both companies also intend to enter into a partnership agreement in France, with the aim of ensuring continuity for existing customers and enabling future growth opportunities
For the 12-month period to the end of March 2019, BT's France operations generated revenue of around EUR118 million. The sale is part of BT's ongoing transformation of its Global unit, as it sharpens its focus on delivering next-generation networking, cloud and security services.
"This planned acquisition represents a small increase in our current revenues in France, which totalled EUR644.7 million in 2019. The current coronavirus pandemic shows the importance of secure and reliable networks to our customers and this deal would significantly strengthen our existing French business in this growth area," said Computacenter Chief Executive Mike Norris.
BT shares were trading 6.6% higher at 125.60 pence each on Tuesday morning in London. Shares in Computacenter shares were 6.8% higher at 1,134.00p each.
By Ife Taiwo; ifetaiwo@alliancenews.com
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