July 16, 2007 -- (WEB HOST INDUSTRY REVIEW) -- UK Web hosting provider Pipex Communications (pipex.co.uk) announced on Friday that it has entered into an agreement to sell its subsidiaries owning its consumer broadband and voice division to IP transit provider Tiscali (tiscali.co.uk) for approximately £210 million, on a debt-free basis, before adjustments. The corporate broadband customers will remain within the Pipex Group.
Pipex says the subsidiaries being sold to Tiscali are Switch2 Telecoms, Pipex Homecall, Toucan Residential, Pipex Internet and Toucan Residential Ireland. Following the sale of the broadband and voice division, Pipex will consist of three divisions namely Web hosting, business services and Pipex wireless.
Pipex's broadband and voice division is 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, says the company.
"Over the past three years, Pipex has successfully transformed the scale and quality of its broadband and voice customer base," says Peter Dubens, executive chairman of Pipex. "In the consolidating UK market, today's announcement crystallizes value for shareholders, and ensures that Pipex's customers will continue to receive a wide range of competitive, high quality communications and Internet services."
