Pipex buys Cauldwell’s Manchester fixed line business

24 Mar 2006

UK broadband and telecoms provider Pipex has acquired the Manchester-based fixed line operator Homecall from Cauldwell Communications for an undisclosed amount, including the assumption of bank debt of around GBP43 million. The sale marks the first stage of the break up of Cauldwell Communications, which also includes Phones4U, after UK mogul John Cauldwell put the business up for sale in November 2005.

Homecall is a provider of voice and broadband services to more than 500,000 customers, of which over 350,000 take more than one service. It posted a loss of GBP25 million in 2005, but predicts it will turn a profit of GBP2 million this year. Pipex says it expects the acquisition to improve its EBITDA by around GBP2 million in 2006 rising to GBP5 million in 2007.

United Kingdom, Pipex (part of Tiscali UK)