Pipex, Britain’s fifth largest broadband ISP, is close to selling its broadband and voice assets to Tiscali in a deal worth £210 million.
The announcement is expected to be made today that Pipex has reached an agreement with Sardinian-based Tiscali to sell off Pipex’s one million customers and small business customers to its Italian rival.
Back in March 2007, as announced on Top 10 news, Pipex had hoped to sell off its entire business for close to £400 million, with a number of suitors including BT, Virgin Media and Carphone Warehouse being interested. Pipex along with its broadband and voice offering, also own a number of other brands including Toucan, Freedom2surf and Bulldog.
Reportedly, other prospective ISPs interested in buying Pipex earlier in the year were deterred by the high price and the difficulty and cost of integrating Pipex’s customers into their own user base. Also many felt Pipex’s valuation of it’s Wi-Max contract was overvalued as industry insiders are unsure as how successful the technology will be.
It is thought only some aspects of Pipex’s operation and customer base have been sold to Tiscali, rather than their entire operation. The fate of the rest of the business (including the Wi-Max venture and hosting services)) is unknown.
You can compare current Tiscali and Pipex broadband deals at Top 10 Broadband.