13 July 2007
The UK's fifth biggest internet service provider (ISP) is set to close a deal to sell its broadband base to Tiscali, it has emerged.
Reports in both the Times and Financial Times suggest that Pipex will reach an agreement today to hand over one million of its consumer and small business customers to the Italian ISP in a deal worth an estimated 210 million.
UK-based Pipex, whose brands include Freedom2surf and Toucan, was hoping to sell the whole group for around 400 million.
The news adds to a long string of tie ups in the industry; including AOL being bought by Carphone Warehouse, BSkyB's deal with EasyNet and a proposed buy out of VirginMedia by private equity firm Carlyle.
It is believed that Pipex felt the pressure of the influx of 'free' broadband deals and bundled packages currently being offered by the industry's main players.
Tiscali recently came out top in a uSwitch poll on customer satisfaction of among home phone users with 87% of customers satisfied.
However, together with Orange broadband and Talk Talk, the ISP failed to impress consumers with its broadband service as its overall customer satisfaction levels fell the fastest over the last few months of the top service providers.
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