BT Group Eyes Sale of Radianz to Streamline Operations

BT Group is reportedly working with Citigroup on a potential sale of its financial services unit, Radianz. This move aligns with CEO Allison Kirkbyโ€™s plan to streamline BTโ€™s operations and reduce costs. Acquired from Reuters in 2005, Radianz generates annual earnings of ยฃ60-70 million and could be sold for a few hundred million pounds. Alongside this, BT is also considering sales of operations in Ireland and Italy as part of Kirkby's restructuring strategy.
BT Group Eyes Sale of Radianz to Streamline Operations
Image Credit: BT
BT Group is collaborating with Citigroup on a potential sale of its Radianz unit, part of CEO Allison Kirkbyโ€™s broader effort to streamline the UK-based telecom company. This strategic move aligns with Kirkby’s plan to simplify BT’s operations by focusing on its core business and reducing complexities. Radianz is a service that enables secure connectivity between financial institutions such as banks, brokers, exchanges, and clearinghouses. The potential sale, as reported by The Financial Times, was confirmed by three individuals with knowledge of the matter.

The possible divestment is part of a larger restructuring effort by Kirkby, who assumed the role of CEO in February 2024, after serving on BTโ€™s board since 2019. During BT’s annual results presentation in May, she outlined her vision to cut costs and simplify the companyโ€™s offerings, platforms, and processes. Kirkby emphasized the importance of “sharpening” BTโ€™s focus by exploring ways to streamline its global business, thereby creating a more agile and simplified organization.


BT originally acquired Radianz from Reuters in 2005 for $175 million, as part of a larger $3 billion contract to provide network services to the media and financial information company. The unit now generates between ยฃ60 million and ยฃ70 million annually in earnings before interest, taxes, depreciation, and amortization (EBITDA), according to sources familiar with its financials. The estimated value of Radianz is believed to be in the low hundreds of millions of pounds.

Neither BT nor Citigroup has provided any public comments regarding the potential sale.

Radianz is currently housed within BTโ€™s business division, which emerged from the 2022 merger of the companyโ€™s enterprise and global units. This division has faced challenges, with declining profitability and a 5% decrease in adjusted revenue to ยฃ1.9 billion for the quarter ending in June. Additionally, the division saw a 2% year-on-year drop in adjusted EBITDA to ยฃ378 million. The company attributed this performance to a decline in legacy managed contracts, a reduction in low-margin sales activities, and contraction within the portfolio unit, partially mitigated by ongoing cost-saving measures.

Kirkby has been vocal about BTโ€™s ongoing efforts to modernize its portfolio and operations within the business division. This follows a November briefing by Bas Burger, CEO of BT Business, where he acknowledged that earlier growth forecasts had not been fully realized. Burger outlined plans to simplify and modernize the division in response to these challenges.

BTโ€™s shares experienced a significant increase, rising by over 17% following the announcement of its annual results in May. The surge was driven by Kirkbyโ€™s announcement of a new ยฃ3 billion cost-saving initiative, an increase in the dividend, and improved cash flow projections. Alongside the potential sale of Radianz, BT has also been considering divestments of its operations in Ireland and Italy. Reports in July indicated that the company might sell its remaining Italian assets, which had been affected by past controversies, to various investment groups.

The company has also attracted notable telecom industry figures as shareholders, including Carlos Slim and Sunil Bharti Mittal, adding further interest to its ongoing restructuring efforts. BT is expected to provide additional updates on its performance and strategic plans when it releases its half-year results in November.


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