186k Ltd buys broadband business from NetServices

186k Ltd, a

UK telecom provider of converged voice and data networks has purchased the consumer broadband wholesale business of NetServices (AIM:NSV) for a price of £1.085 million. Of the total amount, 186k Ltd will pay £300,000 now and rest of the amount will be paid in instalments to NetServices until the end of this year.As per the agreement, 174 wholesale broadband reseller contracts will be transferred from NetServices to 186k Ltd. By this acquisition, nearly 23,000 end user lines will come under the network of 186k Ltd. The transferred contracts which worth £4.5m has been included in the NetServices’ consolidated audited revenues for the year ended 31 August 2006Mark Vickers, Chief Executive of NetServices has said:
“I am delighted that we have been able to reach agreement with 186k for the transfer of these contracts. 186k will continue to service the transferring clients over our proprietary portal, CCP, to ensure that they are serviced as well in the future as they have been by NetServices to date. The broadband deals reduce our exposure to the consumer broadband business and will enable NetServices to focus completely on our strategic aim of being a leading supplier of converged voice and data infrastructure solutions.”In addition, 186k Ltd will find themselves liable for BT central pipes and five NetServices employees. It is also agreed between the two companies that Netservices will remain owners of 23 profitable reseller contracts which will be managed by 186k for a month’s time as per mutual revenue sharing arrangement.