Skanska expands within telecom - acquires UK telecom service company
Skanska expands within telecom - acquires UK telecom service company Skanska is expanding within the telecom sector by acquiring MG Telecommunication (MGT), a UK leader in the field of telecom infrastructure installation and maintenance services of mainly copper- cable networks. Skanska will pay GBP 4.2 M, approximately SEK 65 M, for the company. The selling party is a group of private persons. The Leeds-based company has a strong customer base that includes British Telecom (BT), Kingston Communications, Thus, Fujitsu and Your Communications. It has approximately 400 employees specializing in the provision of telecommunication infrastructure services. The acquisition of MGT is part of Skanska's strategy to expand and broaden the range of services it offers within the telecom and data infrastructure fields. The transaction also gives a significant boost to the company's order book. When the acquisition is complete, Skanska Networks UK's order backlog in the UK telecom sector will total GBP 140 M, or SEK 2,1 billion. "Acquiring MGT gives us a strong platform for growth and establishes us amongst the leading telecom infrastructure contractors. There is considerable growth in the outsourcing by companies of non-core activities and with our increased capabilities we are now well positioned to take advantage of this," says Keith Clarke, President of Skanska UK. Skanska and MGT have cooperated for a long period. Recently, the companies were jointly commissioned by BT to install and assume responsibility for the maintenance of copper and optical fiber networks in the Thames Valley and London areas. As a result of today's acquisition, this project, which is worth GBP 65 M, or about SEK 1 billion, will belong exclusively to Skanska. During the current year, Skanska also has secured a number of major telecom contracts. A nationwide network, valued at around GBP 20 M, SEK 307 M, is being built for BT Airwave PSRCP, for the UK Emergency Services. Planning for a mobile network in the London and Thames Valley areas is under way for Orange. This contract is valued at GBP 12 M, SEK 185 M. Skanska Networks UK together with its sister company Skanska Konnect is part of a global alliance with Nortel Networks for the installation and test operation of the company's equipment on customer premises. This agreement is worth GBP 6 M, or about SEK 92 M, per year for three years. For further information please contact: Cheryl Eaton, PR Manager Skanska UK, Tel + 44 1923 423030 Tor Krusell, Senior Vice President Communications, Skanska AB, Tel +46 8 753 87 47 This and previous releases can also be found at www.skanska.com ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2001/10/31/20011031BIT00690/bit0003.doc http://www.waymaker.net/bitonline/2001/10/31/20011031BIT00690/bit0003.pdf