Business telecoms company Energis has acquired Planet Online, the
UK’s largest independent business-focused internet service provider
Energis believes that this new acquisition, worth pounds 75m, will
strengthen its position as a leading carrier of internet traffic and
will extend its range of business-data services.
As a network operator, Energis already carries 40% of national internet
The Energis-Planet Online deal is just one of several in recent months
between telephone companies and ISPs, suggesting that convergence
between the two is accelerating.
Last month, Cable & Wireless Communications acquired MCI’s internet arm,
while Scottish Power’s Scottish Telecoms subsidiary bought Demon
Analysts are expecting further consolidation in the industry.
’This is an important further step in Energis’ development. Planet adds
leading-edge internet and intranet products, together with a significant
and rapidly growing customer base.
’By acquiring Planet Online, we pole-position Energis in the
fastest-growing sector of the business telecoms marketplace,’ said Mike
Grabiner, chief executive of Energis.
Planet Online was formed in July 1995 and offers internet connectivity,
web hosting and other internet and intranet-based services to business
customers, which include Airtours, Barclays Bank, Emap and the National
Energis, which built its national network primarily along the National
Grid’s electricity pylon infrastructure, is expected to make its first
profit next year.
The business telecoms market, of which it has a 2% share, is predicted
to rise from its present pounds 8bn to pounds 15bn in 2005.