- BT is set to buy Demon Internet, one of the UK's largest Internet service providers, according to a report in today's Times. The prospective deal values the company at £60 million.
Launched in 1992, Demon has around 180,000 customers and employs more than 500 staff. As well as operating in the UK, it has expanded into the Netherlands and has plans to set up in most countries in Western Europe.
However, Demon's growth was dented last year when it returned a loss of £2.9 million on a turnover of £18 million. The loss raised concerns among analysts that the firm had over stretched itself with its ambitous European expansion plans.
Demon recently signed a £1.5 million sponsorship deal with Mohamed Al Fayed's Fulham football club.