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Pipex acquires Host Europe for £31m
More hosting services, greater product mix
Pipex is to acquire Host Europe for £31.2m after making a recommended cash offer for the Web business.
Broadband ISP, Pipex, and hosting outfit, Host Europe, reckon the deal is a neat match since more and more punters want telecom services from a single supplier.
Said Pipex chairman, Peter Dubens: "This acquisition will expand our hosting services, further improve the mix of products that we currently offer our customers and increase our gross margin.
"It is an acquisition which reinforces our position in the UK telecommunications sector."
News of Pipex's latest acquisition comes on the same day the company reported its results for 2003.
Turnover at the company jumped from £8.1m in 2002 to £35.2m last year, while pre-tax loss narrowed from £11.8m to £9.9m.
With customer numbers rising from 25,000 to more than 150,000, Pipex reckon it's now established at the UK's fifth largest broadband ISP.
Said Mr Dubens: "2003 was an extremely important year in the development of the company.
"During this period revenues increased more than fourfold and the company moved from heavy losses to being month on month EBITDA positive by the year-end."
Shares in Pipex were up a smidgen at 11.5p by early afternoon. ®