Energis

Infobox_Company | company_name = Energis Communications Limited
company_
company_type = Private
company_slogan = We can always find a better way.
foundation = 1992
takeover = 2005
location = Reading, Berkshire
Leeds, West Yorkshire
key_people = CEO: John Pluthero
Chairman: Archie Norman
COO: Craig Boundy
num_employees = "Unknown"
industry = Telecommunication| products = "Various"
revenue = profit£361 million GBP (H1 FY2006)
homepage = [http://www.energis.com/ www.energis.com (defunct)]

Energis Communications Limited, briefly "Telecom Electric", or more usually just Energis was a 'technology driven communications company' based in the UK and Ireland. Formally floated on the LSE it became a private company after a financial crisis forced creditors to take control.

In August 2005, a bid was made for the company by Cable & Wireless [ [http://news.ft.com/cms/s/2fb1f350-0d65-11da-aa67-00000e2511c8.html FT.com / Home UK / UK - C&W set to win Energis race ] ] which was accepted by a binding majority of Energis debt holders. The company became part of Cable & Wireless on 11 November 2005 and the Energis brand was phased out almost immediately.

History of Energis

Energis was formed in 1992 as Telecom Electric, out of the UK's National Grid Company. Its national optical fibre network is partially deployed via the overhead power transmission network of the grid.

Energis Plc

As a company floated on the London Stock Exchange Energis acquired a number of companies in the UK and Europe, including Planet Online, ISION AG and others. At one point its Market capitalization was over 10 billion GBP, making Energis plc a top 15 FTSE company.

Planet chose Energis as the telecommunications partner to help Dixons launch the Freeserve ISP, which was taken over by Wanadoo UK (now Orange Telecom). Energis provided the telephony services and Planet provided the e-mail, internet access, etc. elements.

Administration

Energis Plc was placed in administration in July 2002, with its UK operations immediately transferred to Energis Communications Ltd, a wholly owned subsidiary of a holding company called Chelys. Chelys was owned by various banks, which provided 150m GBP of cash to enable Energis to continue operating. These banks were creditors of Energis plc, and were owed around £700 million, mainly raised through bond issues. Private investors who were collectively owed around £20 million at that time were completely wiped out. The Administrators sent a detailed letter to shareholders dated 9 April 2006.

Energis had over-extended itself through high-yield bond loans to fund ambitious international acquisitions in Europe.

During January 2002 the company were forced to make a statement that previously financial statements were lacking accuracy.

Energis had fallen into the trap of how complicated longer term telecoms contracts were accounted for. Internally the company did not have the adequate structure to accurately make these assesments.

The market reacted immediately and overnight virtually all of Energis' market capitalisation was erased. The free fall was dramatic. The business' foundation was dependent on anticipated future profitability and its market capitalisation, which was common with many technology businesses of this era of inflated valuations of tech stock.

Cable & Wireless

On 16th August 2005 Cable and Wireless announced it had reached agreement to acquire Energis for an initial cash consideration of £594 million GBP.

The takeover was approved by the OFT on 25 October 2005, [http://www.oft.gov.uk/News/Press+releases/2005/198-05.htm link] .

C&W completed the takeover would on 14 November, [http://www.theregister.co.uk/2005/11/08/energis_cable_wireless] .

Leadership

Energis was led by a number of Chief Executive Officers during its existence.
* Mar 1993 - Dec 1995 David Dey
* Dec 1995 - Aug 2001 Mike Grabiner
* Aug 2001 - Jul 2002 David Wickham
* Jul 2002 - November 2005 John Pluthero

Energis before the takeover

In its final form, Energis provided a number of services based around its core platforms of ISP, Transmission, IP Networking (Energis has a Cisco Powered Network, using MPLS technology), Contact Center Solutions and Voice (traditional switched telephony). All of these services are now provided under the Cable & Wireless brand.

Energis had a strong reputation for providing bespoke telecoms services and developing innovation for a blue chip client base. At the business' height in the early 2000's they had developed significant in-roads into key market niches.

Interesting and key customers

Energis provided services to a number of businesses, a few of the more interesting were:
* Provided Fujtisu Services with a broad outsource for the Post Office Ltd branch and central network services.
* Provided the BBC with its distribution network for Television and Radio programmes.
* Provided service to support The AA and RAC helpline numbers.
* Provided The Mirror Group with an ATM-based network for its editorial-to-printing process.
* Provided network services to support the Wanadoo UK Internet Service Provider offering.

References

External links

* [http://www.shareholderactiongroup.co.uk Energis Shareholders Action Group]
* [http://www.energis.com Energis' corporate page]
* [http://networks.silicon.com/telecoms/0,39024659,39126046,00.htm Energis: BBC]
* [http://www.energis.com/Internet/pages/news/newsitem.aspx?section=12_08_2003 Energis: The AA]
* [http://www.electronicsweekly.com/Article4660.htm Energis: Mirror Group]
* [http://www.cw.com/about_us/investor_relations/energis.html Energis: C&W announcement]
* [http://www.zero-sum.net/energis-aug-2005.html Energis: Market share and performance at time of acquisition]