After the CEO of Tiscali, UK formally announced their proposed acquisition of Pipex, the other party Pipex too confirmed this report in a press release. While business broadband customers will remain as a part of Pipex group, the agreement that has been reached between two companies let the consumer Broadband and Voice division owned by Pipex's subsidiaries be taken over by Tiscali for £210 million. Thus, Tiscali will acquire Switch2 Telecoms Limited, Pipex Homecall Limited, Toucan Residential Limited, Pipex Internet Limited and Toucan Residential Ireland Limited - the subsidiaries presently owned by Pipex. The deal will be complete after shareholder approval and competition clearance.

Once the acquisition by Tiscali is complete, Pipex will continue to exist with its three wings namely Web Hosting, Business broadband services and WiMAX.

Peter Dubens, Executive Chairman of Pipex expressed his hope that Pipex's customers would continue to receive a wide range of competitive, high quality communications and internet services under the network of Tiscali.

Meantime, Neil Armstrong of PlusNet expressed his surprise over acquisition by quoting Pipex is ranked fifth for customer service while Tiscali ranked seventh. The deal may evoke strong reactions from Pipex customers, his comment suggested.

While Mark Turner, the CEO of Tiscali, was upbeat over the acquisition saying the new Pipex customers now will access the full range of Tiscali services that include broadband, telephone and TV. The deal would help Tiscali to roll out their double and triple-play offers to more customers, he further added.