LONDON (Alliance News) - Cable & Wireless Communications PLC said Tuesday that its subsidiary Cable & Wireless Panamá SA has agreed to acquire Panama-based Grupo Sonitel SA for USD36 million, with an additional consideration of up to USD5 million.
Cable and Wireless Panama is jointly owned by Cable & Wireless, and the Government of the Republic of Panama which each have a 49% stake, with the remainder held by a trust on behalf of its employees.
Grupo Sonitel operates IT and telecom service provider SSA Sistemas, and IT and services provider Sonset. Not included in the transaction is the company's IT hardware reseller Logistica, and a small number of other non-core companies.
The company said that the transaction is in line with its strategy to grow its business and government capabilities. The company recently announced a USD1 billion three year investment plan to upgrade its networks called Project Marlin. This will open up the opportunities to add IT services and telecommunications offerings, which it noted is Grupo Sonitel's "specialist area of expertise."
Grupo Sonitel posted revenues of USD77 million in 2013.
Cable & Wireless shares were down 0.6% to 49.72 pence in early trade Tuesday.
Shares in Cable & Wireless were trading down 0.5% at 49.75 pence Tusday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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