Private equity backed UK mobile phone retail chain, Phones 4u has brought rival online phone retailer, Dial-a-Phone for £9 million (US$18 million). Dial-a-Phone employs approximately 300 staff in Kentish Town and at its distribution centre in Northampton.
The company was reported to be trying to secure a sale for £60 million just a couple of years ago, but has been badly hit by the operators refocusing on their own sales channels and exclusive deals with specific high street retailers.
Commenting on the acquisition, 4u Group CEO Tim Whiting said, "Dial-a-Phone's strong brand and high level of expertise in the direct market are a perfect complement to Phones 4u's brand and strength on the High Street. Combining the Dial-a-Phone business with the Phones 4u direct operation will significantly increase our share of the direct mobile phone market. We are looking forward to welcoming Dial-a-Phone to the 4u Group and believe it will play a significant part in the continued expansion of our mobile phone distribution business."
In the year to December 2007, Dial-a-Phone sold approximately 121,000 mobile phone contracts.
The Phones 4u head office is based in Newcastle-under-Lyme, Staffordshire and was until recently part of the The Caudwell Group formed by John Caudwell. In September 2006 the group was sold and Phones 4u is now owned by Providence Equity Partners
Posted to the site on 20th February 2008
Posted to: www.cellular-news.com/story/29439.php