AO to acquire Mobile Phones Direct
Online electricals retailer AO World has agreed to purchase Mobile Phones Direct for £32.5 million.
AO said the acquisition of the online business will provide a significant boost to its mobile proposition, which is currently limited to the sale of handsets. It will also help AO in its strategy of adding new complementary categories to its offering.
Mobile Phones Direct generated revenues of £121.7 million and EBITDA of £5.5 million in the year ended 31 March. Its websites had approximately 13.6 million visitors in 2017, up from 11.6 million in the previous year.
Commenting on the acquisition, Steve Caunce, chief executive of AO World, said: "In coming together, AO will achieve instant scaleand be well-placed for future opportunities within a highly attractive and growing UK mobile phone market.
"With 5G services expected to launch over the next two years and as the electrical products we sell become more connected than ever before, moving further into the mobile market is a logical next step for us."
The acquisition is expected to complete by 31 March 2019.
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