April 1, 2003 -- (WEB HOST INDUSTRY REVIEW) -- Cable & Wireless (cw.com), the global telecommunications group, today announced it has entered into conditional agreements to sell all of its
businesses that relate to customers requiring domestic-only services in the
Belgium, Netherlands, Sweden and Russia in Northern Europe and Switzerland.
The disposals are part of Cable & Wireless' strategy announced in November
to focus on serving multinational enterprises and service providers in
continental Europe and to withdraw from domestic-only services.
IP-eYe, backed by senior managers currently within Cable & Wireless'
Northern European business, is buying the domestic businesses in the
Netherlands, Belgium, Sweden and Russia. IP-eYe's focus is on national and
multinational businesses in Europe, offering web solutions, hosting, network
integration and data services. Following completion, customers taking Cable
& Wireless' domestic services will be served by IP-eYe while those using
Cable & Wireless' multi-regional services will continue to be served by
Cable & Wireless. Additionally, Ip-eYe will distribute Cable & Wireless
products in its own markets.
Smart Telecom (smart-telecom.ch), a well-established Swiss
telecommunications company providing voice and data services to Swiss-based
customers through a number of locally situated subsidiaries, most notably
VTX, is to buy Cable & Wireless' Swiss domestic business.
After the disposals, Cable & Wireless will retain network and business
operations in Brussels, Amsterdam, Copenhagen, Stockholm, Moscow and
Switzerland, enabling the company to concentrate resources on providing
business-critical information and communications services to European and
multinational enterprises and service providers. Capabilities will also be
retained in Rotterdam and Luxembourg to service Cable & Wireless target
customers.
"The sale of these businesses is expected to mark the first in a series of
transactions across Europe that will allow us to provide an even higher
level of service to our target customers," said Robert Drolet, CEO
continental Europe, Cable & Wireless. "We look forward to a close working
relationship with IP-eYe and Smart Telecom and ensuring a smooth transition
for customers and employees."
The aggregate net assets of the businesses being sold to IP-eYe are
approximately Euro 2 million. The value of the net assets of the business
being sold to Smart Telecom is approximately Euro 300,000.
