Energis acquired

Cable and Wireless is to acquire UK-based Energis for £594 million despite a last minute bid from rival 'Thus'.

The company will be acquired on a debt and cash free basis, except for its finance lease obligations of approximately £37 million.

Cable & Wireless also plans to inject approximately £35 million in cash to meet Energis’ short-term working capital requirements once the deal is completed.

The combination of Cable and Wireless UK and Energis is expected to enable total annual operating cost and capital expenditure savings of approximately £55 million in 2006/7 rising to £80 million in 2007/8.

Combining the two businesses is also expected to reduce company headcount by around 700 by March 2008.

The acquisition is expected to be completed in Autumn 2005, subject to approval from the Office of Fair Trading.