Carphone expects to close AOL UK deal by year end

11 Dec 2006

UK mobile retailer and broadband provider Carphone Warehouse expects to complete its acquisition of the UK operations of Time Warner’s ISP AOL before the end of the year, the company said in a statement. Carphone received approval for the deal from the European Union late last week. According to TeleGeography’s GlobalComms database, Carphone struck an agreement to purchase AOL UK for GBP370 million (USD689 million) in October. Carphone will acquire AOL UK’s customer base as well as supporting management and infrastructure. AOL UK is the country’s third largest broadband provider by subscribers, with around 1.3 million ADSL customers and an 11% share of the market at mid-2006. The deal will see Carphone’s UK broadband customer base boosted to more than 1.6 million, but will stretch the company’s funding to the limit and it will have to fund the acquisition via an extension of existing debt facilities.

United Kingdom, AOL UK (part of Carphone Warehouse), TalkTalk