iomart plc today announced the sale of its broadband business to Centrica Plc.
The transaction for a consideration of £2.0m in cash includes 2750 customers in the UK, customer service facilities in Glasgow and Stornoway, the associated network DSL infrastructures and 40 employees.
iomart chief executive officer Angus MacSween, said: "The purchase of iomart?s Broadband Services Division provides Centrica with a solid foundation on which they can build. Centrica will provide the necessary resource and funds to ensure that they quickly become a leading UK supplier of compelling and competitively priced broadband products."
"Broadband has yet to make an impact in the UK," explained Centrica Telecommunications managing director Ian El-Mokadem. "It?s not unpopular with customers but it has not yet been offered to people at the right price and in the right way. Once that is done, I?m convinced broadband will be hugely popular."
With the launch of its broadband services in the summer of 2000, iomart was one of the first independent companies to provide broadband via BT Wholesale?s ADSL network. The company quickly built a reputation for service and reliability and in terms of DSL connections deployed, is now considered one of the top 3 UK providers, with over 2750 business and residential customers.
MacSween, commenting on the sale stated:
"This deal concludes the transformation of iomart into a services business, focusing on providing secure network, internet and e-mail services, and away from telecoms and infrastructure related products. In particular, our NetIntelligence suite of products is proving attractive to Corporates and other large organisations providing them with the levels of management control and Internet security that they require."
For further information contact:
iomart Press Office: 0141 931 7031
Centrica Press Office: 0161 888 9085