BSkyB to buy AmstradSir Alan Sugar agrees to £125 million deal
01 August 2007
Satellite giant BSkyB is on the brink of a £125 million deal to buy Amstrad, the electronics company formed by Sir Alan Sugar.
The entrepreneur and star of the hit BBC show ‘The Apprentice’ said he could not imagine a better home for the Amstrad business.
Sky says the deal so far has the support of Amstrad shareholders representing 44.8 per cent of the company.
This included the 27.9 per cent held by Amshold Limited, a company controlled by Sir Alan Sugar.
He said: 'Amstrad has worked closely with Sky for many years and I cannot imagine a better home for the Amstrad business and its talented people.
‘Our companies share the entrepreneurial spirit of bringing innovation to the largest number of customers. Sky is a great British success story. I'm proud to have worked so closely with it, and I look forward to continuing to play a part in this exciting business.'
Amstrad currently designs and develops set-top boxes for Sky and supplied approximately 30 per cent of the set-top boxes purchased by the Sky Group in the first half of this year.
Sky says its acquisition of Amstrad will provide it with an in-house design and development capability which will also allow it to speed up the development of new and more innovative products for customers.
Sky's Chief Executive Officer, 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.'
Amstrad was founded by Sir Alan Sugar in 1968 as an electrical goods trader. It 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.