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Pipex Acquires Second ISP - Toucan

Posted: 07th Sep, 2006 By: MarkJ
Having snapped up Bulldog's broadband customers, Pipex has now also announced the acquisition of rival Toucan from IDT Telecom for a cool £24m. Pipex's total broadband subscriber base now stands at a strong 570,000:

Currently, Toucan provides voice, mobile and Broadband Services to its 185,000 customers. With 57% taking more than 2 services, Toucan delivers an average ARPU of £23. Following the acquisition of Toucan and Bulldog, Pipex now has a broadband and voice customer base of 1.14m of which over 570,000 take broadband.

Rationale for acquisition:

* Addition of mobile to product portfolio
* Excellent customer service operations
* Improvement to the cost of sale
* Further sales channels with outbound sales forces in Israel and India
* Greater scale to the synergies of LLU

Peter Dubens, Chairman of Pipex, said, "The acquisition of Toucan brings Pipex further scale across broadband and voice and we welcome Toucan customers to the Group. Toucan maintains very high levels of customer service in Ireland which we intend to replicate across the Group as a whole.

"Importantly, this acquisition will enable Pipex to provide triple play in the UK market by the end of 2007. Broadband, voice and mobile will be bundled and offered to our entire base in the coming months.

We note that some customers of Toucan had recently been complaining about the odd service problem, it's unclear whether this is related or not.
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