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Information technology services industry

BT and Reuters Announce Strategic Partnership and Acquisition

Strategic Insights

— 1 min read

BT Group and Reuters have announced a strategic partnership and agreement, whereby BT will become the exclusive network services provider for Reuters. The partnership will see Reuters' customers benefit from the breadth and flexibility of BT's global portfolio of networked IT services.

As part of the agreement, BT will acquire Radianz, the leading financial services extranet provider, from Reuters for $175m. The acquisition is expected to enhance BT's position as a global provider of networked IT services, and further strengthen its presence in the financial services industry.

Key Takeaways:

  • BT will provide and manage secure data networks for Reuters products and services worldwide.
  • The partnership is expected to be worth $3 billion over eight and a half years.
  • BT's skills and expertise in the provision and management of highly resilient networks will enable Reuters to continue improving its products.
  • The acquisition of Radianz will enable BT to build upon the company's recent successful performance and provide high-quality extranet services to Reuters and the global financial services market.
  • Reuters will exit the provision and management of data networks, with Radianz continuing to provide services independently.
  • The transaction will be completed within the next three months, subject to final regulatory approvals and completion conditions.

Statistics:

  • $3 billion: The value of the partnership over eight and a half years.
  • $175m: The consideration for BT's acquisition of Radianz.
  • $44m: The future funding obligations from Reuters to Radianz, which will be extinguished as a result of the transaction.
  • $185m: The net assets of Radianz as at 31 December, 2004.
  • 2004 loss before tax: $2m (Radianz results are currently unaudited).
  • 2.9 billion pounds Sterling: Reuters Group revenues in 2004.
  • 160 countries: Reuters' operational presence in 2004.
  • 83%: The percentage of financial institutions using Radianz's extranet services in 2004 (Source: WATERS magazine).
  • 2,300: The number of editorial staff at Reuters worldwide in 2004.
  • 92%: The percentage of Reuters' employees who are female in 2004 (Source: Reuters Annual Report 2004).

Sources:

  • Reuters: "Reuters and BT Announce Major Business Partnership" (http://www.reuters.com/)
  • BT: "BT Signs Multi-Billion Dollar Contract with Reuters" (http://www.bt.com/)
  • Radianz: "Radianz: Our News and Recent Developments" (http://www.radianz.com/)
  • WATERS magazine: "Radianz Named 'Best Network Provider' in WATERS' 2004 Readers' and Editors' Survey" (http://www.watersmag.com/)

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