BT today announced the completion of the acquisition of Infonet, one of the world's leading providers of global managed voice and data network services for corporate customers. All conditions to the transaction have now been met, following formal approval of Infonet's stockholders at a general meeting held on February 23.
BT and Infonet announced on 8 November 2004 an agreement for BT to acquire Infonet for $2.06 per share, valuing Infonet at $965m (510m pounds Sterling) inclusive of Infonet's cash balance of $390m (205m pounds)(1), or $575m (305m pounds) net of the cash balance.
Infonet, which will be renamed BT Infonet, becomes part of BT Global Services. BT is confident it will achieve the synergy benefits initially announced, of $150m per annum by the third year after completion, in a way which will ensure service quality is maintained. BT Infonet's experienced management team, led by its chief executive, Jose A. Collazo, will remain in place to manage the business, maintain continuity for customers and assist in the integration of the two customer bases and product sets.
Andy Green, CEO BT Global Services, said: "I am very proud to welcome a great team of highly skilled professionals into the BT family. The combination of BT Global Services and Infonet will create a clear leader in the networked IT services market, and will enhance our position as the supplier of choice for multi-site organisations around the world. With the help of our new BT Infonet colleagues, BT Global Services will continue our drive to help our customers address the challenges and opportunities of the digital networked economy."
Jose A. Collazo, chief executive of BT Infonet, said: "We are about to begin a new era as part of BT, bringing significant opportunities for our customers and employees. BT Infonet brings market-leading skills in network management services, a brand identified with customer service excellence, a suite of services tailored to the needs of a continually globalizing world, global presence and reach around the world, and a stable entrepreneurial organization. It also brings a customer base of leading multinational organizations such as Volkswagen, Nestle, Bayer , IBM, DHL and Solvay. As a part of BT Global Services, we will remain focused on the same goal: to be the partner of choice for multinationals when it comes to launching and servicing mission critical applications."
Infonet's stock has today ceased trading on the New York Stock Exchange. EquiServe has been retained by BT to serve as paying agent. As soon as practicable, the paying agent will mail a letter of transmittal to each person who was a holder of stock at the effective time of the merger. The letter of transmittal will contain instructions for use in surrendering certificates formerly representing shares of Infonet common stock in exchange for $2.06 per share in cash.