Carphone buys Tiscali's UK assets for £236 million

09 May 2009

Carphone Warehouse, UK's third-largest broadband provider, has agreed to pay £236 million in cash for the UK assets of Tiscali, the Italian  Italian internet service provider.

This will propel Carphone as Britain's second largest broadband provider with 4.25 million customers.

''The deal would probably accelerate the company's plans to split its retail and telecom interests, said Charles Dunstone, Carphone's chief executive, adding that a demerger could be executed in November or January.

"We are very committed to this business and the acquisition we have made reinforces that," he said.

Carphone has about 2.8 million customers, while Tiscali is the fifth largest internet service provider in the UK with 1.45 million clients.

The transaction is expected to boost Carphone's profit, raising earnings per share in 2009-10 by 10 per cent; however, the company's net debt is due to rise to £416 million.