Carphone Warehouse to pay £236m for Tiscali UK
CARPHONE Warehouse has agreed to buy Tiscali’s UK operations for £236m.
The deal makes the group’s Warrington-based broadband and fixed-line business Talk Talk the largest residential broadband provider in the country with 4.25m subscribers.
The group said the transaction would immediately enhance earnings, lifting earnings per share by 10% and leading to £40m-50m of cost savings.
The cash deal, funded with existing debt facilities, is subject to clearance from the EU competition authorities. Completion is expected by the end of June.
Chief executive Charles Dunstone said: “In one step, it makes TalkTalk the UK’s largest residential broadband provider with over 25% residential market share and a total of 4.25 million customers.
“It also delivers clear shareholder value with significant enhancement to this year’s earnings per share and substantial synergies to be achieved next year and beyond. We very much welcome Tiscali’s UK customers and staff to TalkTalk.”
Italian Tiscali has 1.68 million boradband customers in the UK. It provides broadband, dial-up, telephone and TV services.
Talk Talk employs around 1,200 staff in Warrington. Last month the group said it would split its retail arm and Talk Talk creating two separately-listed companies following a review of the business.
Lawyers at Addleshaw Goddard’s office in Manchester acted for Tiscali on the deal. DLA acted for Carphone Warehouse.
