Tiscali is to acquire Pipex Communications’ broadband and voice division for £210 million.
The Division, which has more than one million customers, was expecting 2007 sales of over £300 million.
Mary Turner, CEO of Tiscali UK, said: “The acquisition of Pipex’s broadband and voice division further cements Tiscali’s position as a fully integrated telecom and media operator in the top league of the UK market and underlines our reputation as a major investor and innovator in the full range of broadband services.
“Significant synergies and efficiencies can be achieved through this acquisition in particular through network integration, customer migration and indirect costs efficiencies. Over a four-year period, we estimate cumulated synergies in the region of £150 million at EBITDA level ca £50 million to secure the synergies and efficiencies. In addition, we will be able to offer our new Pipex customers the full range of Tiscali’s compelling and innovative services including broadband, telephone and TV. This acquisition provides us with an even greater opportunity in rolling out our double and triple play offers.”
Peter Dubens, executive chairman of Pipex, said: “The board of Pipex is pleased to agree to the sale of the voice and broadband division, which we feel recognises the strong market position we have built over the last three years. Tiscali’s commitment to investment in LLU, along with the new TV services it is introducing will offer our existing customers value and choice in the future.”
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