BT to Acquire Comsat International

BT has announced that it has entered into an agreement to acquire Comsat International, a leading provider of data communication services for corporations and public sector organisations in Latin America. The acquisition of Comsat International, through its parent company, CI Holding Corporation, will bolster BT’s global reach and reinforce its ability to help customers address the challenges and opportunities of globalisation.

Comsat International employs over 700 professionals with in-depth knowledge of Latin American markets and provides services directly in 15 countries. The company has a well-established track record in the delivery of complex projects and the management of network solutions for enterprise, public sector and carrier customers. It has its own extensive regional network and also provides customers with data centre, hosting and security services.

François Barrault, President BT International, said: "This acquisition will be an exciting milestone in the execution of our strategy of well targeted acquisitions around the world, and will strengthen BT's position as one of the global leaders in the digital networked economy. Comsat International has an excellent reputation and is widely recognised for its regional expertise. This will help us take our 21st Century network and services portfolio to customers and prospects operating in the region. This acquisition significantly enhances BT's position in the increasingly important Latin American market. It also underlines our commitment to providing world class services to our customers wherever they do business."

George M. Kappaz, President and CEO of Comsat International said: “Comsat is a leading provider of high-end communications services to the corporate and government sectors in Latin America, and BT Global Services’ capabilities and experience in global networking and IT for major corporations are second to none. The combination of our businesses and capabilities in the region presents an exciting and compelling opportunity for our customers and employees. This represents a validation of our strategy to focus on corporate and government customers, which now will further benefit from the substantial ICT and solutions expertise, increased product and service portfolio and enhanced global coverage that BT brings to the table.”

As at the last audited balance sheet on 31 December 2005, the gross assets of Comsat International were $145 million.

Closing of the transaction is subject to regulatory and anti-trust clearances and the satisfaction of other conditions.