British businessman Sir Alan Sugar has agreed to sell his Amstrad business in a £125m deal with broadcaster BSkyB.
The Amstrad chief executive and chairman, who is majority shareholder at the set-top box maker, said he could not 'imagine a better home' for the business.
Amstrad and BSkyB already have a close relationship as the firm supplies around 30% of the set-top boxes purchased by Sky. The proposal still requires the approval of the company's remaining shareholders.
Founded in 1968 as an electrical goods trader, Amstrad was the founder supplier to Sky TV when the service launched in 1988.
More recently, Amstrad launched the E3 videophone, following on from the E-mailer, which allowed e-mail, internet, pictures and video calls.
The acquisition of Amstrad will provide Sky with an in-house design and development capability, allowing it to source some of its products directly from specialist electronics manufacturers.
Sky said its offer for Amstrad so far had the support of shareholders with 44.8% of the company, including the 27.9% held by Amshold, a business controlled by Sugar.
