(Alliance News) - BT Group PLC confirmed Monday it has agreed to sell its Spanish business to private equity firm Portobello Capital.
BT did not report any financial details about the deal but did note it expects to complete the transaction in the first half of 2020.
"The sale is part of BT's ongoing transformation of its Global unit, focused on delivering next generation networking, cloud and security services to multinational customers. BT will retain a presence in Spain with offices in Madrid and Barcelona, access points to connect to its global network and its cyber security operations centre," the company said.
BT also noted it will continue to have access to the infrastructure in Spain, and will become a reseller of BT products.
The Spanish unit - which provides networking services - delivered, in the year ended March, revenue of about GBP230 million out of a group total of GBP23.43 billion.
BT Global Chief Executive said: "Today's announcement is another key milestone in the execution of our strategy to make Global a more agile and customer focused business. The transaction is great for BT, for our people and for our customers.
"Through agreements with the Spanish business, it provides continuity to both our multinational and local customers. It also enables us to focus on what we do best: providing secure connectivity and digital solutions to multinational companies globally."
Shares in BT were up 2.1% in London on Monday at 205.84 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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BT (BT.A)