Tuesday, 31 July 2007

BSkyB buys Amstrad

BSkyB is Amstrad's main customer with supplies of the Sky set-top box. Broadcaster BSkyB has struck a deal to buy television set-top box maker Amstrad for about £125m. Amstrad, which was founded by the star of BBC One's The Apprentice, Sir Alan Sugar (pictured on the right with James Murdoch of BSkyB), supplies about 30% of the set-top box devices for Sky. Orders from the broadcaster made up about 75% of Amstrad's sales in the year to the end of June.

Sky said that the deal meant they could now save money, design their products in-house and be more innovative. I cannot imagine a better home for the Amstrad business and its talented people. Sir Alan Sugar Shares in Amstrad's rival set-top box maker Pace Micro Technology fell about 11% on the news. Sir Alan, who is Amstrad's chairman and chief executive and owns 28% of the firm, will stay with the business.

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