The move is a part of what BT describes as the “ongoing transformation of its global unit”.
BT also announced that it has entered into wholesale and reseller agreements with CIH, under which CIH will act as a regional channel for BT’s products and services. CIH will also continue to supply domestic connectivity services to BT.
The operator did not disclose financial terms of the deal, but said that the assets and operations in the transaction delivered revenue of £110 million in the 2018-19 fiscal year.
In terms of what is being exchanged, the deal includes two owned fibre networks with a total length of 650km, 2000km of leased fibre lines, four data centres and five teleports. The divested business is headquartered in São Paulo, Brazil.
Bas Burger, CEO of Global, BT said: “Today’s announcement is a key milestone in the execution of our strategy to become a more agile and focused business. It comes at a particularly challenging time for the global economy. As such, it is a sign of our determination to keep the business moving forward and continue connecting communities, businesses and governments. I am pleased to begin a new chapter in the region with CIH, providing continuity for our people and our customers.”
George Kappaz, chairman of CIH, said: “We are very excited to be re-entering global telecommunications after having successfully focused on the technology sector over a number of years. We have considerable experience in the region and the sector, and greatly look forward to growing the business and providing the highest level of service to all customers in the region, including BT. The acquired business fits very well with our strategy and existing global portfolio.”
This is all a part of BT’s ongoing global unit transformation – a transformation which included the sale of domestic operations in Spain to Portobello Capital in December 2019. BT said that its global unit is focused on “delivering next generation networking, cloud and security services to multinational customers” while winding down its presence in infrastructure.
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