Sir Alan Sugar has agreed to sell his once iconic electronics business Amstrad to BSkyB in a deal understood to be worth £125m. Sugar says he “cannot imagine a better home” for the business.
The deal, which has yet to be agreed by shareholders, will net Sugar about £35m. BSkyB says the acquisition will improve efficiencies and drive innovation at the company.
BSkyB chief executive James Murdoch says: “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, established in 1968, supplies electronic equipment such as set-top boxes to BSkyB and the satellite broadcaster accounts for around 75% of Amstrad’s revenues.
Amstrad was once an iconic British PC brand, synonymous with computing in the UK but larger rivals squeezed it out of the market and in recent years it has