Herbert Smith has advised long-standing client BSkyB plc on its recent acquisition of Telefónica UK’s entire Broadband and Fixed-Line Telephony Business. This transaction will make BSkyB the second-largest provider in the UK broadband market, building on its existing position as the UK’s fastest-growing broadband and telephony business.
Announced on 1 March 2013, the acquisition is expected to complete by the end of April, subject to regulatory clearance.
Under the terms of the deal, BSkyB will pay £180 million to Telefónica UK for the consumer broadband, home phone and line rental customers. An extra contingent amount, not exceeding £20 million, may be payable dependent upon the successful delivery and completion of the customer migration process by Telefónica UK.
The team at Herbert Smith Freehills was led by Stephen Wilkinson, corporate partner and global head of M&A, TMT partner Amanda Hale and senior corporate associate Andy Radford, with support from tax partner Howard Murray, competition partner Stephen Wisking, employment partner Andrew Taggart, disputes partner Nick Peacock and additional advice from Herbert Smith Freehills’ data protection, IP and pensions teams.
Stephen Wilkinson comments:
“We are delighted to have advised BSkyB on its latest transaction which cements its position as a leading provider of broadband services in the UK. Our 20-years plus relationship with BSkyB has seen the firm advise on a range of media acquisitions, one of the fastest evolving sectors, and this latest deal underlines Herbert Smith Freehills industry position as one of the UK’s leading TMT practices.”
Slaughter & May advised Telefónica UK.
