BT Acquires Wire One, Set to Ramp Up Video Biz

The videoconferencing market is about to become more competitive. BT plc has agreed to acquire U.S.-based video provider Wire One Holdings Inc. – a move that will give the company the broad reach and portfolio necessary to go head-to-head with AT&T Inc. (http://www.att.com) and other players for enterprise video accounts.

BT Conferencing CEO Aaron McCormack dubbed the transaction as a “reverse takeover,” as BT’s existing conferencing organization will be folded into Wire One, rather than the other way around (although it will be rebranded as BT). Thus, Wire One will form the core of BT Conferencing’s video services unit.

MacCormack said on a call with media and analysts that the transaction is entirely synergistic, and will bring together a set of assets and capabilities that will allow the division to rapidly expand its sales opportunities. That includes managed services, equipment, BT’s global IP MPLS network, professional services and more. He predicted little, if any, reorganization or integration-related job losses for either side. The headquarters and management team of the new unit will be spread across existing offices in Denver, Dayton, Ohio, and King of Prussia, Pa.

Dan Connors, CEO of Wire One, said the union allows Wire One, which services about 8,000 customers and 55 percent of the Fortune 100, to leverage the BT brand equity to take sales to the next level. “Let’s face it, we’re a medium company,” he said. Connors said the plan is to make “significant” investments now to go after high-growth areas such as high-end immersive rooms and the desktop opportunity.

Terms of the transaction were not disclosed, but the audited gross assets of Wire One as of the end of 2007 were $90.5 million, which, MacCormack said, could be extrapolated as being the low end of the acquisition price spectrum.

Share this article: Email, Slashdot, Digg, Del.icio.us, Yahoo!MyWeb, Windows Live Favorites, Furl
Add this article feed to: RSS, My Yahoo, Newsgator, Bloglines