BT beefs up US presence with INS buy

BT beefs up US presence with INS buy

By Andrew Parker

FINANCIAL TIMES
Published: February 2 2007 02:00 | Last updated: February 2 2007 02:00

BT has agreed to buy International Network Services, a California-based IT company, for $250m (£128m), in the UK telecommunications group's latest effort to beef up its presence in the US.

The agreement will see 900 INS staff join BT as it seeks to improve its ability to serve leading US companies' communications and IT needs.

INS advises companies on how to plan and manage their IT investments, and use them to raise productivity. It also helps clients guard against security threats to their IT systems.

INS will form part of BT Global Services, the division that supplies voice and data networks to multinationals.

BT said the proposed deal should dovetail with its $40m acquisition last October of Counterpane Internet Security, a California based company that monitors clients' networks for security threats.

INS does "ethical hacking", where staff test whether companies' networks and IT systems are vulnerable to hackers.

Andy Green, chief executive of BT Global Services, said the acquisition of INS "significantly boosts our ability to supply world-class professional services to US headquartered corporations and increases BT's presence in the key north American market".

In 2004 BT paid $965m for Infonet, a California based supplier of voice and data networks to companies.

In 2005 BT paid $175m for Radianz, a New York based supplier of networks for Wall Street banks and clients such as the New York Stock Exchange.

BT Global Services may provide the group with more than 50 per cent of its revenue in 2006-07.

Last year, the division was set a target of doubling its US revenue to $2bn by 2009. BT said INS generated $140m of revenue in its last financial year. INS was once part of Lucent Technologies, the US telecoms equipment manufacturer that merged with France's Alcatel last year.