Reuters Group has awarded BT Group a worldwide network services outsourcing contract valued at US$3 billion over eight and a half years, the companies announced Wednesday. Additionally, Reuters is selling its Radianz unit to BT for US$175 million.
Reuters, the London news and information provider, had said it was set to sell Radianz, a provider of network connectivity to the financial services industry, last October but details were not made public until Wednesday. As part of the deal, BT also agreed to pay Reuters for any cash left in the Radianz business at the date of purchase.
Reuters had said previously it would buy the 49 percent of Radianz owned by French communications network company Equant NV for US$110 million.
BT said the acquisition of Radianz fits strategically into its transformation into a global provider of networked IT services. For its part, Reuters said the proceeds from the sale would be invested in its business and also used to pay down debt.
The deal to take over the provision and management of Reuters' data networks is BT's largest such contract to date, the London telecommunication company said.