BSkyB has bought Amstrad in a deal worth £125 million – 150 pence in cash per share – which should see Sir Alan Sugar collect £34.5 million.
Sky said that the acquisition of Amstrad will provide the satellite broadcaster with an in-house design and development capability, which Sky believes will deliver significant operational and financial benefits.
Amstrad is currently a major supplier of set-top boxes to Sky, supplying approximately 30% of the boxes purchased by Sky in the financial year ending June 30.
Sky added that the purchase will provide it with “an in-house product design and development capability, creating significant potential cost savings and facilitating enhanced future technological innovation”.
James Murdoch, Sky CEO, said: “Sky and Amstrad have had a long and positive relationship. The acquisition accelerates supply chain improvement and will help us to drive innovation and efficiency for the benefit of our customers.”
Sir Alan Sugar, Amstrad chairman and chief executive, said: “Amstrad has worked closely with Sky for many years and I cannot imagine a better home for the Amstrad business and its talented people. Our companies share the entrepreneurial spirit of bringing innovation to the largest number of customers.
“Sky is a great British success story. I’m proud to have worked so closely with it, and I look forward to continuing to play a part in this exciting business.”
Sugar will stay on to run the business under its new owners.
Last week Sky announced that its full year revenue increased by 10% to £4.5 million, with an annual operating profit of £815 million (see BSkyB Revenues Increase).
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