March 16, 2007

A devastating loss for Pipex

The internet service provider Pipex, who bought the customer base of its rival Bulldog, just released that it purchased 30,000 fewer costumers less than expected. The deal between Pipex and Bulldog was agreed in September 2006 (that time Bulldog had a base 110,000 costumers). After the transfer was completed last Tuesday, Pipex found out, that it had only purchased a base of 80,000 users.

It seems like the missing 30,000 users, left Bulldog because of a series of technical and support problems in the last couple of years. The transfer amount was calculated on a per-subscriber basis, now after the real costumer numbers are revealed, the transfer price of £ 12.5 m will be lowered linear to the number of users.

On Tuesday the Pipex's management released in a trading statement, that they were still satisfied with the acquisition.

Read more UK ISP News.

• Comment

Leave a Comment