£107m deal for Phones 4u subsidiary

PHONES 4u is to sell its insurance arm, Lifestyle Services Group, in a £107m deal.

The North Staffordshire firm has agreed the sale with New York Stock Exchange-listed Assurant, a specialist insurance business.

Lifestyle has more than 1,000 UK staff at three customer services centres. It is part of the Phones 4u Group which is owned by US private equity group BC Partners.

In a statement Phones 4u said the LSG business operated as a “distinct and separate entity” and all staff will transfer to Assurant. “The sale of the LSG business is not expected to result in any disruption to the on-going Phones 4u group,” it added.  

Tim Whiting, chief executive of Phones 4u Finance, said: “Since we started LSG in 2005 it has built its reputation on supporting clients to deliver excellent service in the mobile device insurance market. Assurant is an excellent home for LSG and will support it on its continued journey whilst allowing Phones 4u to focus on further opportunities in its core business.

“I would like to thank all of the LSG employees for their contribution to the group and wish them well for the future”.

Assurant’s president Robert Pollock said: “Our acquisition of LSG strengthens and expands our global mobile presence, which is a an important strategic priority. Their established client portfolio, strong customer service capabilities and experienced management team accelerate our opportunities in the European mobile marketplace.”