BT sells Spanish assets to Portobello Capital

News

BT has agreed the sale of its Spanish assets, including 5,600 km of fibre networks and three data centres, to private equity group Portobello Capital.

The move is part of a strategy to slim down the Global Services division and refocus on core operations.

BT will retain a presence in Spain with offices in Madrid and Barcelona, access points to connect to its global network and its cybersecurity operations centre. Through a wholesale agreement, BT will continue to have access to the domestic infrastructure. The Spanish business will also become a reseller of BT’s global products under a resale agreement.

BT’s Spanish arm provides networking services to around 600 enterprises and generated £230 million revenue in 2018/19.

Key milestone

“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,” said Bas Burger, (pictured) CEO of Global, BT.

“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.”

Subject to regulatory approval, the transaction is expected to complete in the first half of 2020.