Scottish Telecom Buys Demon Internet

ScottishPower’s telecom division, Scottish Telecom, acquired Demon Internet, the UK’s largest independent Internet service provider, for #66 million.

The deal will provide Demon with additional telco and utilities infrastructure for its intended expansion in Europe.

“This acquisition establishes us as a leading provider of Internet access in the UK both in the business and residential markets,” said Rod Matthews, chief executive of ScottishTelecom, and the new chairman of Demon Internet, in a statement.

“There is a wide range of synergies between both operations and we will be seeking to route a significant proportion of Demon Internet traffic across the Scottish Telecom fibre-optic network, thus increasing revenues for the company as a whole.”

Demon Internet was a pioneer in the introduction of Internet access in the UK and the Netherlands with low-cost, flat rate connectivity.

The company offers standard dial-up services and a wide range of business packages including Web hosting. Demon reportedly hosts no less than 50 percent of all UK sites.

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