BT prepped to pay £67m for PlusNet

BT is on the acquisition trail once again - having made a £67m offer for ISP PlusNet.

A spokesman for the telco said the company was attracted to PlusNet for its customer service, innovation and management - as well as its WorkPlace CRM system for teleworkers.

"We're wanting to use broadband to deliver more than fast access and PlusNet fits in with that," he told silicon.com. The pair has also been working together for some time and BT "has been increasingly impressed with PlusNet as a company," he added.

According to BT, should the offer be accepted, the company will continue to operate under the PlusNet name and retain its current CEO, Lee Strafford.

Sheffield based PlusNet reported EBITDA of £7.5m for the 12 months ended 30 June 2006 and the ISP has some 200,000 broadband customers, plus additional narrowband subscribers. BT's currently number around 2.98 million customers and, should the acquisition go through, the telco will increase its market share by around 1.5 per cent.

Speculation of a union first surfaced last month, when press reports of a bid by BT caused PlusNet's share price to surge.

PlusNet has also been on the acquisition trail in recent times, buying local ISP Metronet for £1.7m late last year.

BT's spokesman said the company hasn't ruled out further acquisitions and is "keeping its eye out" for companies where the timing and price is right.