SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                    FORM 6-K

                        Report of Foreign Private Issuer


                      Pursuant to Rule 13a-16 or 15d-16 of
                       the Securities Exchange Act of 1934



                              01 February, 2007


                                  BT Group plc
                 (Translation of registrant's name into English)


           BT Centre
           81 Newgate Street
           London
           EC1A 7AJ
           England

                    (Address of principal executive offices)



Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.

                         Form 20-F..X... Form 40-F.....

Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934.

                               Yes ..... No ..X..


If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): 82- ________



Enclosures:  1.  Acquisition announcement made on 01 February 2007.




February 1, 2007


                   BT to acquire INS, expanding professional

                          services and U.S. footprint


BT today announced it has agreed terms to acquire International Network Services
Inc. ("INS"), a leading global provider of IT consulting and software solutions.
This professional services acquisition will increase BT's presence in North
America and will significantly enhance BT's consulting capabilities.


The acquisition of the California-headquartered company will add to BT's global
professional services resources of more than 7,000 people across the globe. The
move will see hundreds of consultants join BT, mostly in the U.S. and Canada.
INS enjoys an excellent reputation due to the skills and expertise of its
consultants and also for its methodology and knowledge management
infrastructure.


INS specializes in four major areas -- Enterprise Architecture and Governance,
Business Productivity, Information Risk Management, and Infrastructure
Transformation. Based in Santa Clara, California, with offices in Europe, Asia
and throughout North America, the company builds, implements and secures
business technology infrastructures for its customers. It has served some 75
percent of Fortune 500 enterprises and more than half of the Fortune 1000
companies.

Andy Green, chief executive officer of BT Global Services, said: "The INS
business is another great services acquisition for us. INS has a proven business
model in the Networked IT Services space that we will replicate around the
world. At the same time it significantly boosts our ability to supply world
class professional services to US-headquartered corporations and increases BT's
presence in the key North American market. INS brings to BT a wealth of
consulting and professional services people and the move is fully in line with
our strategic goal of becoming the global leader in the digital networked
economy."

David Butze, president and chief executive officer of INS, said: "This
acquisition really serves as the next step in INS's evolution in expanding our
ability to deliver against our core business areas. By combining INS's expertise
in business-driven information technology consulting and software solutions with
the delivery reach of BT Global Services, we will have an even stronger
foundation to build upon while delivering the most sophisticated and
comprehensive set of business productivity, IT infrastructure technology and
software solutions available in the market place today and in the future."


The deal heralds a new milestone in the execution of BT's global and US growth
strategy, and follows the acquisition of California-based Counterpane in October
2006, significantly strengthening BT's overall capabilities in the security and
professional services space.

INS has almost 900 people and in twelve countries worldwide.

As at the last audited balance sheet date on September 25, 2005, the gross
assets of INS were 49.7 million USD.




About BT

BT is one of the world's leading providers of communications solutions and
services operating in 170 countries. Its principal activities include networked
IT services, local, national and international telecommunications services, and
higher-value broadband and internet products and services. BT consists
principally of four lines of business: BT Global Services, Openreach, BT Retail
and BT Wholesale.


In the year ended 31 March 2006, BT Group plc's revenue was GBP19,514 million
with profit before taxation of GBP2,040 million.


British Telecommunications plc (BT) is a wholly-owned subsidiary of BT Group and
encompasses virtually all businesses and assets of the BT Group. BT Group plc is
listed on stock exchanges in London and New York.


For more information, visit www.bt.com/aboutbt



About INS

INS is a leading global provider of business-driven information technology
consulting and software solutions. For more than a decade, INS has been helping
organizations effectively use technology to achieve strategic business goals.
Its unique solution portfolio enables its customers to reduce costs, increase
flexibility, strengthen security, ensure compliance and improve efficiency.


INS applies its structured methodologies, strategic alliances and diverse
industry experience to deliver in-depth analyses and implement custom solutions
aimed at driving business growth. Its consultants hold over 1,100 certifications
in 96 categories and its KnowledgeNet database gives them access to over 15
years worth of intellectual property, solutions and proven techniques in an
easily-searchable format. Its customers include global enterprises and service
providers in all major industries, including telecommunications, financial
services, retail, pharmaceutical/ healthcare, manufacturing, government and
travel and transportation.


For additional information, please visit www.ins.com.


Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.


BT Group PLC
(Registrant)


By: /s/ Patricia Day
--------------------
Patricia Day, Assistant Secretary.


Date: 01 February, 2007