Manx Telecom is entering a new era, with the announcement it has new owners.

Parent company Telefonica has sold the firm to CPS Partners and HgCapital, in a deal worth ?158.5 million pounds.

Manx Telecom's managing director Chris Hall is welcoming the news.

He says the investment is a vote of confidence in the business and the Island's economy.

CPS Partners is a specialist international telecommunications management company, while Hg Capital is a European private equity firm with a record of investiment in the telecoms, media and technology sectors.

Manx Telecom as part of O2, was acquired by Telefonica in 2006.

The sale now is said to be part of a rationalisation and a re-focus on larger markets.

CPS is praising Manx Telecom's Data Centre operation and is promising investment in new telecoms technology will continue.

For its part, HgCapital is stressing the importance of Manx Telecom's partnership with the Manx government, and says it's behind the Island's promotion as an international e-business centre.

No job losses are expected as a result of the change in ownership and the workforce is to be offered the chance to buy shares in the business.

The acquisition is expected to be complete by the end of this month.

With 300 staff, Manx Telecom is one of the Island's largest employers.