Dixons has acquired a 22% stake in ecommerce business Pixmania, taking its share holding in the company to 99%.
Dixons bought the stake from founders Steve and Jean-Emile Rosenblum for £8m.
Completion of the acquisition is expected to take place later today, Dixons said.
The electricals retailer added that parts of Pixmania’s operations face “significant challenges”.
Dixons chief executive Sebastian James said: “I am pleased that we have been able to acquire substantially the remainder of the Pixmania business.
“Pixmania is the heart of our very successful UK multichannel business and this will ensure the stability and flexibility to continue to improve the experience for the customers of that business.
“Pixmania’s own trading business continues to face strong market headwinds and this move will also allow us to manage the company in line with the group’s wider strategy and take the decisive actions necessary to improve its performance.”
Dixons acquired the initial 77% of Pixmania in 2006 for a total cash consideration of £185m, at the prevailing exchange rate.
The remaining 1% is controlled by Club Fotovista, a French company held by employees and former employees of Pixmania.
No comments yet