TIM is reportedly making a play for BT’s remaining assets in Italy, which include a selection of data centers and a critical backbone network.
According to Reuters, TIM has submitted a non-binding bid for these assets, which are part of BT Italia and were left behind following the sale of much of its Italian operations.
Sources familiar with the matter indicated that TIM is seeking approximately EUR 100 million from BT for these assets. This move comes as TIM looks to expand its data center capabilities and strengthen its position in the Italian market.
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The Italian telecommunications giant already has a history with BT, as it acquired the units serving public administrations and small- to medium-sized enterprises (SMEs) in Italy in 2020. The value of this previous deal was undisclosed but considered relatively minor, given the size of the operations involved.
BT‘s decision to divest its Italian operations followed an accounting scandal that emerged around eight years ago, prompting significant restructuring. This divestment formed part of a broader strategy to reshape BT Global, which may now be up for sale under the new CEO, Allison Kirkby.
In addition to selling two Italian business units to TIM, in January, BT offloaded BT Enìa, an Italian ICT company, to Retelit. This deal included a fiber network and a data center. The remaining BT Italia assets comprise four data centers and a backbone network.
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The assets are drawing interest from various players in the Italian market. Besides TIM, Retelit and Italian private equity firm, Nextalia, are also reportedly interested. Moreover, Nextalia is a potential bidder alongside Spain’s Asterion Industrial Partners.
While official bids are yet to be confirmed, binding offers are expected by the end of this month. TIM’s bid aligns with its strategic goals following the recent sale of its NetCo networks business to KKR in July. The company is focused on enhancing its enterprise segment and expanding its cloud capabilities, including forging partnerships with global operators and advancing Italy’s cloud hub project, Polo Strategico Nazionale.
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The outcome of TIM’s bid will depend mainly on the terms BT is willing to accept. Given the nature of BT’s previous Italian asset sales, details of the final agreement may still need to be fully disclosed.
