TIM and BT announce have signed a preliminary agreement on the acquisition of selected BT Business Units in Italy serving Public Administration and Small & Medium Enterprises (SME) by TIM.
The Public Administration Business Unit provides communication services to a number of ministries and agencies of the national government, as well as regional and local governments. The SME Business Unit offers connectivity and cloud services to small and medium enterprises throughout Italy.
The planned transaction of the Public Administration Unit will enable TIM to expand its supply of communication and connectivity services, accelerating digitalization of the Italian Public Administration. With the planned integration of the Small & Medium Business unit, TIM will further diversify the offer of secure and efficient ICT and cloud solutions for small and medium businesses.
The agreement also includes customer support for the SME Business Unit, delivered by BT’s Palermo Contact Center.
The planned transaction is part of BT’s ongoing transformation of its Global unit as it sharpens its focus on delivering next-generation networking, cloud and security services to multinational organisations. BT will retain a strong presence in Italy serving multinational businesses and organisations, including access points to its global network and data centres.
The two business units included in the planned transaction generated revenues of approximately €90 million during the fiscal year ended in March 2020.
The planned transaction is subject to consultations with trade unions required by law and the competent authorities’ clearance. It is expected to complete by the end of the first quarter of 2021.