BT Ireland looks set to acquire Dublin-based networking outfit Cara Group in a deal that could be announced as early as this week

Cara is involved in LAN, WAN and wireless networking and also IP telephony for government and corporate clients.

Speculation that Cara could become a take-over target have been circulating for at least six months, say insiders, with a number of potential bidders believed to be interested in the business.

However, insiders have told The Register that BT has managed to secure a deal as it looks to expans its networking operations.

No one from Cara returned calls asking for comment while a spokeswoman for the giant telco said the company did not comment on rumour and speculation.

On Monday, BT snapped up LAN outfit Total Network Solutions Limited (TNS) for an undisclosed sum. The acquisition is part of BT's plan to gain more ground as a networked services provider and to expand into areas such as LAN, IP telephony, wireless networking and security. ®