Broadreach Networks:-
Allied Powers were
appointed to reconstruct the business of Broadreach Networks, the result of
which involved the sale of the principle parts of the business to two separate
organisations. The rail communications
business was purchased by QinetiQ and the fixed locations business to NWP
Spectrum.
The reconstruction
took six months from May to October to achieve with the full support of the
management team and investors.
11 October
05
QinetiQ acquires Broadreach Networks - deal strengthens QinetiQ's
'internet for rail' business
QinetiQ
has announced the acquisition of parts of Broadreach Networks Limited,
including its subsidiary Broadreach Train Services Limited, a leading provider
of Wi-Fi internet to the European rail industry.
Broadreach will be merged with QinetiQ's existing wireless services operations
for rail, creating a strengthened business called QinetiQ Rail Limited (www.QinetiQ.com/rail)
that will focus on the delivery of onboard internet for trains, other important
onboard services supported by wireless communications, and static internet
hotspots at stations.
Train operating companies around Europe are
increasingly looking to provide mobile internet access to improve customer
services and differentiate themselves from the
competition from air and road travel. Recent research conducted by Broadreach
suggested that 77% of business travellers wanted Wi-Fi
onboard trains, with 70% of respondents saying they would be more likely to
travel by train if Wi-Fi was provided.
Broadreach was formed in 2000 and its major shareholders included BT, Virgin
and Intel. Broadreach has well-established relationships with a number of the
leading train operating companies including Eurostar
and Virgin Trains. Broadreach has already installed its Connected CarriageTM system on Virgin's Voyager train and is
currently undertaking a series of technical and commercial trials with Virgin
Trains.
Broadreach also brings a number of contracts to provide static wireless
hotspots at train stations, which will be consolidated with contracts awarded
by FirstGroup through QinetiQ's partnership with The Cloud, Europe 's
leading Wi-Fi company.
Announcing the deal, Hal Kruth, Managing Director of
QinetiQ's Security and Commercial Ventures Sector, said: "This deal
combines the strengths of two very complementary companies. Broadreach has
established sound relationships with operators and suppliers alike which gives
us real traction in the marketplace. When you add QinetiQ's technical know-how,
particularly in wireless technology and the provision of real-time information
systems, the result is a business that is well placed to exploit the increasing
demand for internet access across the European rail network."
Magnus McEwen-King, founder of Broadreach and now CEO of QinetiQ Rail Limited,
added: "It is clear that wireless internet access at stations and on
trains gives rail operators a real competitive edge, particularly with business
passengers. However, the formation of QinetiQ Rail enhances the offering to
rail operators by adding fleet operation and security propositions that utilise
the Connected CarriageTM system. QinetiQ Rail
represents a winning combination of technological expertise, solid long term
backing, a clear commercial approach and strong working relationships with key
players in the European rail industry."
QinetiQ has been at the forefront of wireless technology development for many
years and offers a broad range of market leading services to both commercial
and defence customers. These include bespoke wireless fixed and mobile
information solutions, system design, and development and assessment for a wide
range of wireless communications and information systems.
QinetiQ has developed a wireless network solution that supports the information
services at major rail stations, including converged voice, data and imagery
services. The system can drive and monitor all passenger information displays,
CCTV cameras and Help-Points inside the wireless zones.
Acquisition of Fixed and WiFi Internet
Business of Broadreach Networks Ltd
Spectrum Interactive Plc (“Spectrum”)
(LSE:SIN), a leading operator of internet and payphone terminals in the UK and Germany,
today announces that it has acquired almost all of the assets of the fixed and
wireless public internet access business of Broadreach Networks Limited
(“BRN”). Terms of the transaction are not being
disclosed, but Spectrum expect to see turnover in their Internet business rise
by at least £500,000 pa as a result of the deal.
Spectrum is acquiring approximately 400 fixed
and wireless internet units from BRN to complement Spectrum’s existing public
internet terminal business and broaden Spectrum’s existing focus on airport and
hotel sites to retail establishments.
The acquisition of BRN means Spectrum will
operate in excess of 1600 internet terminals and 300 WiFi
hotspots in the
BRN, which was founded in 2000, provides fixed
and wireless internet access services at sites across the
Mark Lewarne,
Chief Executive of Spectrum, commented:
“Following our successful acquisition and
integration of UK Explorer in February 2005, this acquisition further
strengthens our public internet access offering, bringing additional customers
into our core sectors of travel and hospitality. Importantly, this deal also
moves Spectrum into new sectors such as retail where BRN have a good presence.
We continue to see excellent growth prospects
in the public internet access area and I am therefore delighted we have been
able to conclude this transaction, which will be earnings enhancing. This is
our second transaction in the internet access space this year and we are
confident that further acquisition opportunities will develop in the