Acquisition increases Skanska Networks UK’s capabilities

Press release 06/11/2001 00:00 CET

Skanska Networks UK has strengthened its capabilities in the telecommunications market by acquiring MGT, a leading contractor in the installation and maintenance of copper and optical cable.

The acquisition of MGT, which employs approximately 400 staff, increases Skanska Networks UK’s skillbase in this sector with the aim of growing its share of work in the broad band and mobile telecommunications market. It is part of a strategy to provide a comprehensive service in the telecoms infrastructure market.

Keith Clarke, chief executive of Skanska Construction said: ”Acquiring MGT gives us a strong platform for growth and establishes us amongst the leading telecom contractors. There is considerable growth in the outsourcing by companies of non-core activities and with our increased capabilities we are now well positioned to take advantage of this.“

The acquisition comes barely a month after the announcement that Skanska Networks UK was teaming up with MGT in a term contract, worth around £65m, to install and maintain copper and optical cable for BT in the Thames Valley.

Prior to the Thames Valley deal, Leeds based MGT has worked with Skanska for a number of years as a subcontractor on telecom infrastructure projects. It is one of BT’s eight major contractors providing network maintenance for regional business units and is the prime contractor for BT Yorkshire and Humberside. Other major customers include Kingston Communications, Thus, Fujitsu and Your Communications.

Skanska Networks UK has become an established telecom contractor since entering the market almost ten years ago. It has grown rapidly, developing and expanding its resources and skills on the strength of its work for major industry names such as BT, Orange and Crown Castle. It has a mobile networks operation based in Leeds and a fixed networks business in Farnborough, Hampshire,

The acquisition of MGT follows a strong year for the business. Earlier this year Skanska Networks UK was chosen to participate in the BT Airwave PSRCP project and in the Orange mobile networks expansion plans in the Home Counties and the Thames Valley.

Skanska is also a member of a worldwide alliance with Nortel Networks and in August became one of only two preferred suppliers to be chosen to implement Nortel Networks equipment build and test operations at client premises throughout the UK and Eire.