Cable & Wireless (C&W) is to buy rival telco Energis for £594m, beating late bidder Thus to the company.
Energis has an enviable list of blue-chip corporate telecommunications customers, including AOL, BBC, IBM, Boots, Littlewoods, Centrica and DHL through to the Government Secure Intranet (GSi), which proved a major reason C&W wanted the company.
C&W is now expected to slash around 700 Energis jobs as a result of the takeover, which is subject to Office of Fair Trading approval.
Energis chief executive John Pluthero is to join the C&W board after the acquisition.
Thus had come in at the last minute with a higher offer for the company but the Energis board had recommended the C&W bid.