BT targets Asia-Pacific with Frontline buy

BT has acquired Frontline Technologies for approximately £68m.

Frontline provides IT consulting, infrastructure services, systems integration and IT outsourcing to local, regional and multinational customers within Asia Pacific.

The company is listed on the main board of the Singapore Exchange and has operations in China, Hong Kong, India, Indonesia, Malaysia, Singapore, the Philippines, Taiwan and Thailand.

On completion of the share buyout, all issued Frontline shares will be transferred to BT at a cost of 0.245 Singapore dollars each.

Frontline was valued at 157m Singapore dollars before the trading in its shares was suspended. BT's price to buy the shares represents a 33.9 per cent share premium for one month.

The completion of the share scheme is subject to the fulfilment of certain conditions, including the approval of frontline shareholders and the confirmation of the High Court of Singapore.

BT said the acquisition complemented its existing networked IT services within the Asia Pacific region.

"Frontline has an excellent reputation for the delivery of complex solutions and network management services to corporate customers with a strong presence in the financial services, transportation, manufacturing, telecommunications, education, healthcare and public sectors," a BT statement said.

The telecoms company said Frontline added approximately 5,000 highly-skilled and professional people to its numbers.

"We believe our combined reach and skills will create an unbeatable team in Asia Pacific as we seek to respond better to our customer challenges and opportunities," BT said.