Dixons Carphone is selling its German phone retail business to telecoms firm Drillisch following a significant restructuring of the business.
The completion of the sale of The Phone House to Germany-based Drillisch is expected to take place by the end of May.
Dixons Carphone will receive 3% of Drillisch shares for The Phone House with the prospect of further payments from “future excess cash flows”.
The deal comes following Dixons Carphone’s closure of its wholesale hardware operation in Germany.
Dixons Carphone group chief executive Sebastian James said: “This transaction enables Drillisch to broaden its horizons into wholesale connection and dealer operations.
“We have also agreed a long-term service contract, for the provision of insurance, with scope to expand this into further services in future, through our Connected World Services division. We believe that this is the start of a strong, healthy and growing business together.”
The disposal of The Phone House is part of Dixons Carphone’s strategy of only focusing on businesses where it has a market leading position, while striking partnerships in international markets through its Connected World Services division.