Broadband and telephone provider Tiscali is set to acquire the broadband and voice divisions of Pipex. The deal, which is for a princely £210m, will take Tiscali's user base up to 1.9 million subscribers.
The announcement of this deal comes as the company draws closer to releasing its IPTV services and subsequent triple-play package of phone, broadband and telly.
The debit incurred from Tiscali's purchase of Pipex's broadband/voice services will be underwritten by Intesa Sanpaolo and JP Morgan. In Tiscali's press release, UK CEO Mary Turner, produces this gem of a quote:
[advert]Significant synergies and efficiencies can be achieved through this acquisition in particular through network integration, customer migration and indirect costs efficiencies. Over a four-year period, we estimate cumulated synergies in the region of £150 million at EBITDA level ca £50 million to secure the synergies and efficiencies
Watch out for those efficient synergies, then.
The face of the UK broadband market is significantly changed from what it was a few years ago, when dial-up still reigned supreme and cable/DSL was for the rich and nerdy. Today, the number of players dwindles as acquisitions are followed up by yet more acquisitions. For example, Pipex has itself bought Nildram, Freedom2surf and the user-base of Bulldog Broadband, prior to this acquisition by Tiscali.
Tiscali's continued unbundling of exchanges around the UK could put it in a strong position against Virgin Media and other big players. Nabbing Pipex will take its market share up to 15%.
We attempted to contact the 'Hoff for comment, but his secretary, whilst breathing heavily, informed us that he was too sexy to make a statement.
