Sugar sells £125m Amstrad to BSkyB
Sir Alan Sugar has agreed to sell his Amstrad business
Sir Alan Sugar has agreed to sell his Amstrad business in a £125 million deal with broadcaster BSkyB.
The Amstrad chief executive and chairman, who is majority shareholder at the set-top box maker, said he could not "imagine a better home" for the business.
Amstrad and BSkyB already have a close relationship as Sir Alan's firm supplied around 30% of the set-top boxes purchased by Sky in the year to June 30.
The proposal still requires the approval of the company's remaining shareholders.
Founded by Sir Alan Sugar in 1968 as an electrical goods trader, the company has focused on supplying technology accessible to the mass market.
Listed on the London Stock Exchange in 1980,
MetroAmstrad launched the first mass market home computer package in the mid-1980s and was the founder supplier to Sky TV when the service launched in 1988.
More recently, Amstrad launched the E3 videophone, following on from the E-mailer, which allowed email, internet, pictures and video calls.
The acquisition of Amstrad will provide Sky with an in-house design and development capability, allowing it to source some of its products directly from specialist electronics manufacturers.
BSkyB chief executive James Murdoch said: "Sky and Amstrad have had a long and positive relationship. The acquisition accelerates supply chain improvement and will help us to drive innovation and efficiency for the benefit of our customers."
Sky said its offer for Amstrad so far had the support of shareholders with 44.8% of the company, including the 27.9% held by Amshold, a business controlled by Sir Alan. The offer price of 150p a share values the company at £125 million and is at a premium of 23.7% to Monday night's closing price.
Sugar sells £125m Amstrad to BSkyB
