Tiscali – Pipex deal to be announced soon

Tiscali, Italian based UK broadband provider is all set to buy Pipex’s broadband services along with its voice customer base. The proposal for sale out has been considered since the beginning of this year and consequently Pipex appointed a team of bankers to start negotiations with buyers.

Pipex owns other broadband providers that include Nildram, Bulldog and Freedom2Surf. The deal is estimated to be worth £210 million while the market value of Pipex comes around £336m. If the deal is reached by both parties, Tiscali will get the broadband customers and voice customers under its network. Pipex has a broadband customer base of 570,000 by the end of 2006.

Pipex offer various services that include home broadband, business broadband and hosting services. It is well known that Pipex is the first ISP in UK to launch WiMAX services in UK. As part of Pipex’s services are to be sold, Pipex may look for buyers to sell out its other services.