Tiscali snaps up Pipex's broadband

Tiscali snaps up Pipex's broadband

Summary: Deal sees company sell its broadband and phone division to Tiscali, but it is holding on to its business services, web hosting and Pipex Wireless

TOPICS: Networking

Pipex has sold its broadband and phone division to Tiscali for £210m.

The businesses being sold to Tiscali include Pipex Homecall, Pipex Internet, Switch Telecoms and Toucan Residential.

Peter Dubens, executive chairman of Pipex, said Pipex is continuing a strategic review of the company's other business divisions and reviewing its options for the distribution of the proceeds from the broadband and voice division to its shareholders.

He said that "in the consolidating UK market" the deal "crystallises value for shareholders" and ensures Pipex's customers will continue to receive a wide range of high-quality communications and internet services. The deal is conditional on shareholder approval and competition clearance being received.

Pipex is holding on to three divisions following the acquisition, namely its business services, web hosting and Pipex Wireless.

Pipex Wireless, a joint venture between Intel and the ISP, rolled out WiMax in Milton Keynes last year with a Warwick rollout on the cards for this year.

Pipex has expanded through a number of acquisitions in the last few years, including buying Bulldog Broadband and Toucan last year for £36m.

Topic: Networking

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  • Better late than never ZDNet

    Come on ZDNet, try and keep up with the competition, this was announced lunchtime on Friday!
  • Breaking news vs blogs

    Thank you for your comment, and thank you for following our timeliness. We do try to lead the pack generally, but in this case the news broke early on Friday afternoon, when we were busy in meetings.

    As it happens, we (OK, I) blogged the story in the morning, while it was still in the realms of speculation. As soon as it happened, I updated the blog to reflect the certainty of the sale, and promised a story soon. Friday ended, the weekend arrived and first thing on Monday the story went up. I then updated the blog again to link to this.

    As far as I'm concerned, that is one of the beauties of having blogs on the site alongside the regular news channel - announcing breaking news without compromising on the analysis that a full news story should contain.

    For the blog entry, see: http://community.zdnet.co.uk/blog/0,1000000567,10005638o-2000331761b,00.htm
    David Meyer