MANX Telecom has announced today that it has new owners.

Previously part of the Telefonica group, Manx Telecom has been bought by CPS Partners, a specialist international telecommunications management company, and HgCapital, a leading European private equity investor which invests mainly in the telecoms, media, technology, healthcare, industrial, and services sectors.

The acquisition, which is valued at ?158.5 million, is expected to be completed by the end of June 2010, subject to clearance by Isle of Man Government regulators. The deal involves significant investment in Manx Telecom and in the Island’s economy. Staff will also get the opportunity to own shares in the company.

Announcing the purchase, Simon Cunningham, Partner at CPS, said, “At CPS Partners, we have been admirers of Manx Telecom for a long time. It’s a company with a great track record and huge potential for the future.

“Manx Telecom has made significant investments in the Isle of Man, which has given the Island a telecoms infrastructure which many larger countries would envy.  We intend to build on that.  The company also has a well deserved reputation for innovation, and has many firsts to its name in the development and roll out of new telecoms technology. That will also continue under our stewardship.

“In addition to growing the company’s on-Island business, we also intend to keep Manx Telecom at the leading edge of global eBusinesses, and we anticipate significant further investment in Manx Telecom’s Data Centre operation as a direct result of this transaction.  Key to all of this is, of 

course, Manx Telecom’s staff; they represent a huge  pool of expertise and commitment, and our plans are to give them the opportunity to own a share in the business they have made such a success.” 

Telefonica confirmed that the decision to sell Manx Telecom came about as a result of its decision to rationalise its business and concentrate its activities in large markets, such as Brazil, Spain, and Germany. It was also confirmed that the Manx Telecom name will stay – and that it will remain an Isle of Man registered company, with a majority of Manx people on the Board, and a Manx Chairman. 

The existing management team will remain in place, and no redundancy or job losses are expected as a result of the change of ownership.  

 

Speaking for HgCapital, Alex King, Head of Technology Media and Telecoms, said, “The Isle of Man is an attractive economy for any investor, thanks to the actions of successive governments in creating an economic and regulatory framework in which companies can grow and flourish.

“I’d like to stress that the future for Manx Telecom is inextricably linked with its partnership with the Isle of Man Government in our joint efforts to support the development of the Manx economy, and in particular in promoting the Island’s e-business strategy to attract companies and investment to the Island.

Responding, Manx Telecom Managing Director, Chris Hall, said, “This is very positive news for Manx Telecom, its customers, its employees, and for the Isle of Man.  Manx Telecom is a strong, profitable, and successful company, one with an excellent track record, and a great future.

“We are delighted that CPS Partners and HgCapital have chosen to make this significant investment in Manx Telecom, and in the Manx economy.  This is a huge endorsement of our track record in building a world class company, and a vote of confidence in the future of the business.  This 

acquisition is characterised by an enormous amount of goodwill on both sides, and it is particularly pleasing that, as part of the deal, staff will be given the opportunity to own a part of the business in which they work so hard, and so well.”