BT Regulatory News (BT.A)

24 March 2020

BT AND COMPUTACENTER IN TALKS ON THE SALE OF BT'S DOMESTIC OPERATIONS IN FRANCE

Planned divestment part of BT's ongoing transformation - Deal would strengthen Computacenter's existing business in France

BT and Computacenter today announce that they have entered exclusive negotiations on the acquisition of BT's domestic operations in France by Computacenter. The transaction is subject to consultations with works councils over a minimum period of two months. This process will adhere to any additional French Government guidance issued as a result of the coronavirus pandemic. It will then be subject to regulatory approval, with completion expected to take place by the end of 2020.

BT's domestic operations in France include management and maintenance of IT and network infrastructure, as well as networking and related professional services. During the fiscal year ending in March 2019 they generated total revenue of c.£104m (c.€118m). The acquisition would enable Computacenter to strengthen its position in the French networking market and increase the number of its major domestic customers in France.

The planned transaction 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 to multinational organisations.

BT would retain a strong presence in France serving multinational businesses and organisations, including access points to its global network and a cyber security operations centre. BT and Computacenter also intend to enter into a partnership agreement in France, ensuring continuity for existing customers and future growth opportunities.

"With this agreement we are close to reaching another milestone in the execution of our strategy to make BT Global a more agile business focused on the growing requirements of our multinational customers. I believe this agreement will prove a key step forward for our customers, for our people and for BT. It also offers a positive future for our domestic customers and the people who support them," said Bas Burger, CEO of Global, BT.

"This planned acquisition represents a small increase in our current revenues in France, which totalled €644.7m 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. It would bring our customer offering in France closer to the broader portfolio in our larger European markets, providing a strong foundation for our continued long-term growth," said Mike Norris, CEO of Computacenter Group.

ENDS

About BT

BT's purpose is to use the power of communications to make a better world. It is one of the world's leading providers of communications services and solutions, serving customers in 180 countries. Its principal activities include the provision of networked IT services globally; local, national and international telecommunications services to its customers for use at home, at work and on the move; broadband, TV and internet products and services; and converged fixed-mobile products and services. BT consists of four customer-facing units: Consumer, Enterprise, Global and Openreach.

For the year ended 31 March 2019, BT Group's reported revenue was £23,428m with reported profit before taxation of £2,666m.

British Telecommunications plc (BT) is a wholly-owned subsidiary of BT Group plc and encompasses virtually all businesses and assets of the BT Group. BT Group plc is listed on the London stock exchange.

For more information, visit www.btplc.com 

About Computacenter 

Computacenter is a leading independent technology partner, trusted by large corporate and public sector organisations. We help our customers to source, transform and manage their IT infrastructure to deliver digital transformation, enabling users and their business.

Computacenter is a public company quoted on the London FTSE 250 (CCC.L) and employs over 16,000 people worldwide.

For the year ended 31st December 2019, Computacenter plc's revenue was £5,052.8m with Adjusted PBT of £146.3m

For more information, visit www.computacenter.com