The Carphone Warehouse and Tiscali have reached an agreement for TalkTalk to acquire Tiscali’s UK operations for £236m.
Completion of the deal is subject to EU competition authority clearance, and Tiscali obtaining formal approval of its debt restructuring plan. Completion is expected by the end of June.
Carphone Warehouse chief executive 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. In one step, it makes TalkTalk the UK’s largest residential broadband provider with over 25 per cent residential market share and a total of 4.25 million customers.”
He added: “It also delivers clear shareholder value with significant enhancement to this year’s earnings per share and substantial synergies to be achieved next year and beyond. We very much welcome Tiscali’s UK customers and staff to TalkTalk. Together we intend to continue leading the way in UK broadband.”
Tiscali is the UK’s fifth-largest internet service provider, providing broadband and IPTV services to 1.45m subscribers.