Scottish Telecom Buys Demon Internet

November 14, 2008 nnyq.com edit
ScottishPower's telecom division, Scottish Telecom, acquired Demon Internet, the UK's largest independent Internet service provider, for #66 million.

The deal will provide Demon with additional telco and utilities infrastructure for its intended expansion in Europe.

"This acquisition establishes us as a leading provider of Internet access in the UK both in the business and residential markets," said Rod Matthews, chief executive of ScottishTelecom, and the new chairman of Demon Internet, in a statement.

"There is a wide range of synergies between both operations and we will be seeking to route a significant proportion of Demon Internet traffic across the Scottish Telecom fibre-optic network, thus increasing revenues for the company as a whole."

Demon Internet was a pioneer in the introduction of Internet access in the UK and the Netherlands with low-cost, flat rate connectivity.

The company offers standard dial-up services and a wide range of business packages including Web hosting. Demon reportedly hosts no less than 50 percent of all UK sites.

Lucent Unveils New Suite of ADSL Solutions Delta Three Announces Net Calls From USA To UK