Carphone Warehouse TalkTalk to buy Tiscali’s UK operations
Published: 8 May 2009 By MoneyhighStreet Staff Leave a Comment
The Carphone Warehouse Group, which owns TalkTalk, is to buy Tiscali’s UK operations for £236 million.
The deal to buy Tiscali will make TalkTalk the UK’s largest residential broadband provider with over 4 million subscribers.
TalkTalk will have over 25% residential broadband market share.
Tiscali has been under mounting pressure for some time, particularly since April when its future was put into question when its auditors refused to sign off the 2008 year of accounts.
Currently Tiscali is the 5th largest internet service provider (ISP), providing broadband services to nearly 1.5 million customers.
CEO of Tiscali UK, Mary Turner, said ‘We are delighted to become part of TalkTalk. It’s good news for customers who will increasingly benefit from a group that has consistently championed best value and award-winning customer service.’
TalkTalk anticipate making annualised savings of £40-£50 million by March 2011 through customer migration, network integration and simplification and billing integration.
CEO of Carphone Warehouse, Charles Dunstone, said ‘We are delighted to be acquiring Tiscali’s UK business – we know the business well and the fit with TalkTalk is perfect.’
The Carphone Warehouse share price is currently up over 5% on the news. The company anticipates their acquisition will enhance EPS for the current year by 10%.
