Under the services agreement, BT will manage Fiat Group's global telecommunications requirements across 40 countries. This contract will enable Fiat to focus further on its core activities, while benefiting from BT's expertise in networked IT services.
BT say the acquisition of Atlanet from Fiat further reinforces their position in the Italian market by contributing new customers and revenues and a strong existing relationship with Fiat.
Andy Green, CEO BT Global Services, said: "BT is delighted to have been selected by such an established and respected Italian company to be its global provider, and is committed to developing a long-term partnership with Fiat that supports its transformation programme. This deal further demonstrates our continuing success in winning global contracts with leading multi-national companies across the world."
BT expects to be able to generate annual cash cost savings of around €20 million by 2008, primarily through migrating traffic onto owned assets and the consolidation of networks. Atlanet will be integrated into BT's Italian operations.
The transaction is subject to regulatory approval and is expected to complete by February 2006.