Sky agrees Easynet Global Services sale

Sky has sold the business-to-business part of its Easynet internet service provider to private equity firm LDC London.

LDC will pay £100m for Easynet Global Services, although the deal is subject to regulatory approval and a "works council consultation in respect of certain Easynet employees".

Under the deal, Sky will retain all of Easynet's UK network assets, but Sky and LDC will enter a long-term supply agreement granting Easynet Global Services wholesale access to Sky's fibre network. Easynet will also continue to be a key supplier to Sky.

After acquiring Easynet in 2005 for £211m, Sky used the ISP's network to strengthen its Sky Broadband and Sky Talk services, along with offering a 'triple play' package of internet, landline and digital television.

"The acquisition of Easynet was central to the early success of Sky Broadband and Sky Talk," said Sky's chief financial officer Andrew Griffiths.

"Whilst retaining the UK network assets to support the continued growth of our residential customers, we propose to exit the B2B segment with the sale of the business to a credible team and on attractive terms."

LDC, which is backed by the Lloyds Banking Group, has already given its support for the leadership of current Easynet chief executive David Rowe.

Peter Brooks, LDC London managing director, praised Easynet's successful business and "best-in-class" management team.

"Easynet provides innovative services to multinational clients across the attractive data networking and managed hosting sectors," he said.

"Management consistently deliver industry leading levels of service whilst generating strong financial returns. We look forward to supporting David and his team as Easynet begins its next phase of development."