Telefónica sells Manx Telecom to HgCapital

Manx Telecom, the Isle of Man's largest telecommunications and internet provider, has been sold by its Spanish owner to a British private equity firm.

HgCapital confirmed that it had acquired a majority stake in Manx Telecom from Telefónica and valued the business at £158.8m.

The acquisition is in partnership with telecommunications management firm CPS Partners.

Manx Telecom employs 300 people and reported revenues of £69m in 2009.

Its managers will also acquire a share in the business.

Alex King of HgCapital said the Isle of Man was attractive to companies as it had had 25 years of continuous GDP growth, a skilled workforce and had a "global reputation" for investing in electronic services.

Chris Hall, managing director of Manx Telecom, said: "We are delighted that HgCapital and CPS Partners have chosen to make this significant investment in Manx Telecom, and in the Manx economy.

"This is a huge endorsement of our track record in building a world class company, and a vote of confidence in the future of the business."