BSkyB buys Amstrad for £125m

[BGonaSTICK]

Sir Alan Sugar's Amstrad group has accepted terms of £125m takeover bid from BSkyB in a deal that will see the star of The Apprentice collect £34.5m.

The 150p a share cash offer, has been accepted by the board of Amstrad including founder Sir Alan, who holds 27.5% of the company.

Sir Alan, who last month collected £25m when he sold his stake in Tottenham Hotspur football club, will stay on to run the business under its new owners.

The offer represents a premium of almost 24% on last night's closing price and saw Amstrad shares soar more than 20% to 146.75p in early trading this morning.

Amstrad is a major supplier of set-top boxes to Sky, and Sky is by far Amstrad's largest customer, accounting for some 75% of its revenues last year.

Sky said the acquisition will provide it with an in-house design and development capability, which will deliver "significant" cost savings.

It will also give the group greater control over product design and allow it to accelerate product development.

Sky chief executive James Murdoch said this morning that the two companies "have had a long and positive relationship".

He added: "The acquisition accelerates supply chain improvement and will help us to drive innovation and efficiency for the benefit of our customers."

Sir Alan, chairman and chief executive, said he could not imagine a "better home" for the Amstrad business.

"Our companies share the entrepreneurial spirit of bringing innovation to the largest number of customers.

"Sky is a great British success story. I'm proud to have worked so closely with it, and I look forward to continuing to play a part in this exciting business."

Amstrad was founded by Sir Alan in 1968 - its name is based on his initials, Alan Michael Sugar Trading - and in the 1980s was the first British company to sell affordable home computers.

The fortunes of the company have waned in recent years and Sir Alan has become better known for his role on the BBC's successful television series, The Apprentice.

[madrat]

Please Please Please don't tell me that means all future Sky products will be Amstrad

Couldn't they had bought out Pace or Thomson.

Why Sky WHY :?

[wod]

wonder what will happen to pace, thomson receivers then if they have inhouse company making them