BT and TIM announced they have signed a preliminary agreement on the acquisition of selected BT business units in Italy serving public administration and Small & Medium Enterprises (SME) by TIM.
The public administration business unit provides communications services to a number of ministries and agencies of the national government, as well as regional and local governments. The SME business unit offers connectivity and cloud services throughout Italy.
The planned transaction will enable TIM to expand its supply of communications and connectivity services, accelerating digitalisation of the public affairs at central, regional and local levels in the country. With the planned integration of the SME business unit, TIM would further diversify the offer of secure and efficient ICT and cloud solutions for small and medium businesses.
The agreement also includes customer support for the SME business unit, delivered by BT’s contact centre in Palermo.
The planned transaction is part of BT’s ongoing transformation of its Global unit as it sharpens its focus on delivering next-generation networking, cloud and security services to multinational organisations. BT will retain a strong presence in Italy serving large enterprises and multinational companies, including access points to its global network and data centres.
The two business units included in the planned transaction generated revenues of approximately €90 million during the fiscal year ended in March 2020.
The planned transaction is subject to consultations with trade unions and regulatory clearance.
It is expected to complete by the end of the first quarter of 2021.