BT buys network services division of CS Communication & Systemes

BT has bought a French services company to boost its IT and network services revenue in France.

BT will pay £41m for the IT and network services division of CS Communication & Systemes, which employs 1,400 people and hit £94m of revenue in 2006.

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BT submitted a binding offer to CS Communication & Systemes. It now has until 30 November to complete the deal. BT will need merger and regulatory clearances.

The acquisition would almost double BT's IT and network services revenue in France to around £272m.

Changing a lethargic public sector company will not be simple, said Dominique Raviart, an Ovum analyst. But if anyone understands that, BT should, Raviart argued. "Critical infrastructures is a unit in its early phase of recovery. Still if the recovery continues, £41m could be a very reasonable entry price to the French market."

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