Satdude
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Tiscali pays for Pipex broadband and voice
Italian communications provider Tiscali said it will buy the broadband and voice operations of Britain's Pipex for 210 million pounds, increasing its presence in its key market.
Tiscali said it would get a 650 million euro (440.7 million pound) credit line from banks Intesa Sanpaolo and JP Morgan to finance the deal and replace much of the group's outstanding debt. The facility could be part financed through a capital increase of 150 million euros.
Britain's crowded and increasingly cut-throat broadband market has seen a wave of consolidation in recent months, but analysts say the market remains ripe for more deals as price competition forces small players to shut up shop.
Tiscali gets about two-thirds of its revenue from Britain and the remainder from Italy, where it is also looking to expand.
Tiscali said it expected cumulated synergies of about 150 million pounds at the core earnings level over a four-year period, with integration costs of about 50 million pounds.
Tiscali shares, which had been suspended pending the statement, renewed trading up 2.31 percent at 2.3 euros in Milan.
Recent deals in Britain's broadband sector include Carphone Warehouse's purchase of AOL Internet access business for 370 million pounds and BT's purchase of PlusNet for 67 million pounds.
Tiscali also said its first-half preliminary core profit was 60 million euros, up 45 percent year-on-year. Revenues stood at 393 million euros. It said the results were in line with its 2007 targets.
Regards Satdude.
Italian communications provider Tiscali said it will buy the broadband and voice operations of Britain's Pipex for 210 million pounds, increasing its presence in its key market.
Tiscali said it would get a 650 million euro (440.7 million pound) credit line from banks Intesa Sanpaolo and JP Morgan to finance the deal and replace much of the group's outstanding debt. The facility could be part financed through a capital increase of 150 million euros.
Britain's crowded and increasingly cut-throat broadband market has seen a wave of consolidation in recent months, but analysts say the market remains ripe for more deals as price competition forces small players to shut up shop.
Tiscali gets about two-thirds of its revenue from Britain and the remainder from Italy, where it is also looking to expand.
Tiscali said it expected cumulated synergies of about 150 million pounds at the core earnings level over a four-year period, with integration costs of about 50 million pounds.
Tiscali shares, which had been suspended pending the statement, renewed trading up 2.31 percent at 2.3 euros in Milan.
Recent deals in Britain's broadband sector include Carphone Warehouse's purchase of AOL Internet access business for 370 million pounds and BT's purchase of PlusNet for 67 million pounds.
Tiscali also said its first-half preliminary core profit was 60 million euros, up 45 percent year-on-year. Revenues stood at 393 million euros. It said the results were in line with its 2007 targets.
Regards Satdude.