Freeserve, the UK’s leading internet service provider, is to be taken over by Wanadoo. The company, which is 80% owned by Dixons and believed to be worth £1.5-1.8bn, today agreed to merge with its French rival in an all-share deal.
The combination of the two groups will create a leading European new media company offering a range of services including ISP, Portal and e-commerce services and traditional and new media directory services. Dixons will become the second largest shareholder in Wanadoo with a 12.7% stake in the enlarged group and John Pluthero, CEO of Freeserve, will join the executive committee of Wanadoo.
Commenting on today’s deal he said: “We are delighted to join forces with Wanadoo. The additional resources of a large international group, combined with our ongoing relationship with Dixons will create new opportunities and accelerate the development of our core business.”
Dixons announced its plans to auction its stake in the group earlier this year (see Dixons To Auction Freeserve). Talks with German group T-Online collapsed in June, however, and bid rumours have since surrounded the company.
Freeserve: 01442 354285
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