BT to buy PlusNet?

BT has made a cash offer of £67m to buy internet service provider PlusNet.

According to BT, if the offer is accepted, PlusNet will retain its brand identity and will continue to operate from its base in Sheffield. Lee Strafford will remain the CEO.

The company said that it was looking to buy PlusNet because it has a strong reputation for customer service and innovation.

However, a recent report suggests that PlusNet's customer satisfaction ratings have plummeted since March of this year.

Plus Net customers also encountered problems last summer when the company permanently lost customers emails.

Strafford implied that there was a strong possibility that the offer would be accepted. "Whilst the PlusNet Directors continue to believe that PlusNet is a high quality business, our sector is consolidating and there are considerable benefits to PlusNet in becoming part of BT," he said.

PlusNet has almost 200,000 broadband customers in the UK.

The move hasn't come as a great shock to industry analysts. “This is another example of the rapidly consolidating broadband market. We expect to see more of this activity over the next six months,” said Steve Weller, head of communications services at uSwitch.com.

http://www.plus.net/
http://www.bt.com/

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