Viatel Technology Group, a Dublin-based digital technology firm, is reportedly interested in acquiring BT Group's Irish unit, which has been put on the market again after five years. Other potential buyers have also expressed interest, although their identities remain unconfirmed. BT's CEO, Allison Kirkby, indicated in May that the company is looking to optimize its global operations as part of a significant cost-cutting initiative.

Previously, BT had entered exclusive negotiations to sell BT Ireland to Mayfair Equity Partners in 2019, but those talks fell through the following year due to a change in BT's strategy. Both Viatel and BT Ireland declined to comment on the current situation.

Macquarie, an Australian financial services firm, acquired a significant minority stake in Viatel last December, enhancing its capacity for further acquisitions. Viatel, led by former Microsoft Ireland CEO Paul Rellis, has made nine acquisitions since 2020, including a recent €30 million purchase of MJ Flood's technology division, which strengthens its cybersecurity and cloud computing capabilities.

BT Ireland, managed by Shay Walsh, is the second-largest fixed-line wholesaler in Ireland, serving major clients like Vodafone and Bank of Ireland. The company has also been responsible for the Republic's emergency call-answering service for 15 years but recently withdrew from a tender process for the next contract. This decision may make BT Ireland more attractive to potential buyers, although it remains unclear if any interested parties want to take over the emergency service contract.

BT's history in Ireland dates back to 1998, when it established a joint venture with ESB. Over the years, it has made several acquisitions, including Esat Telecom, and has undergone various structural changes, including the spin-off of its mobile division, which became O2.

The sale process for BT Ireland is being managed by Citigroup, despite earlier reports suggesting UBS was involved. As the market evolves, the interest from companies like Viatel highlights the ongoing consolidation in the telecommunications sector.