GX Networks in agreement to acquire Pipex for £55 million
GX Networks has announced details of the acquisition of Pipex for £55 million pounds. The Pipex name is to live on, in the form Pipex Communications PLC.
Pipex to date has had 100% of its shares owned by David Rickards and family. David Rickards will be remaining with Pipex joining the board in an executive capacity and is quoted as saying "We needed an alliance with a larger organisation to take our business to the next stage. GX, with its highly resilient network presence and a culture similar to ours, is the right choice for Pipex. I am delighted that I will be filling a senior executive role in the combined organisation going forward, and that the Pipex brand name is to be maintained.".
Obviously business is carrying on as usual at Pipex, and for a company that has £10 million profits before tax from a £33 million takeover that continuity is very important. The size of the turnover and profit shows that if managed well and with a large enough customer base (119,000 customers), broadband and business level Internet access can be profitable. David Rickards comments show that expansion is on the cards, GX Networks has previously acquired FirstNet (which ran the old Tele2 wireless network). This may be the start of something large in the wireless arena.
More info on GX networks previous acquisitions at The Register.