Pipex services have been up for sale since mid March and now a deal has been struck.
Rival ISP Tiscali has laid down a cool £210m to snaffle up the Broadband and Voice divisions of Pipex, the purchase made on a debt-free basis, before adjustments. Corporate broadband customers will remain within the Pipex group.
Subsidiaries being sold to Tiscali are: Switch2 Telecoms Limited, Pipex Homecall Limited, Toucan Residential Limited, Pipex Internet Limited and Toucan Residential Ireland Limited.
Pipex's Broadband and Voice division has long been a leading provider of telecommunications and Internet services in the UK market, reporting revenues of £231.7 million and profit before tax of £13.9 million (excluding amortisation of goodwill and inter-company interest) in the year ended 31 December 2006. As of 31 December 2006, net tangible assets stood at £13.1 million (excluding goodwill, investments and inter-company balances). At that time, the division had approximately 570,000 Broadband customers and 480,000 Voice customers.
The deal now has to go before shareholders for approval in an imminent Extraordinary General Meeting.
Remaining assets of Pipex, should the deal be passed – as expected – will be the company's hosting, business services and WiMAX project. This is significant since it shows Pipex, like Bulldog and others, was keen to get out the rat race of the micro margin consumer broadband market.
So all well and good, but the the question I'm sure on everybody's lips is What will become of the Hoff...?