BSkyB buys Amstrad for £125 million

Surprise cash takeover

31 July 2007 9:23 GMT / By Amy-Mae Elliott

Amstrad, owned by Sir Alan Sugar, has been bought by BSkyB in a £125 million deal.

The takeover bid was a surprise cash offer, and will mean Sugar, with a 27.5% stake in the company, gets about £35 million.

Sky are Amstrad's biggest customer, with around 75% of their products bought by the broadcasters, which in turn makes up about 30% of all Sky's set top boxes.

BSkyB said the takeover would give them savings in their supply chain and "improved control over product design and specification and enhanced flexibility to deliver continual improvements in product quality".

Sir Alan Sugar won't be hearing the famous words he dishes out on The Apprentice each week as he will stay on with Amstrad under the new owners.

He said: "I cannot imagine a better home for the Amstrad business and its talented people".

"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."

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