Feeds

GX Networks to buy Pipex for £55m

To change name to Pipex Communications

  • alert
  • submit to reddit

Choosing a cloud hosting partner with confidence

GX Networks plc - the telco and business broadband outfit - is to buy Pipex for £55 million in shares and cash, it was announced this morning.

If the deal gets shareholder approval at an EGM later this month then GX Networks will change its name to Pipex Communications plc to make the most out of the Pipex brand.

Pipex - which is wholly owned by MD David Rickards and his family - has been around for 12 years. At the end of June it had around 119,000 punters - one in ten of all ADSL connections in the UK.

Part of its success as a broadband ISP was its willingness to spend cash up front to attract punters, combined with competitive monthly subscriptions which undercut the big boys such as BT and AOL.

Early on, many of Pipex's critics said such an approach could not be sustained. However, in the year to the end of May Pipex generated £32 million in revenue and notched up pre-tax profits of more than £10 million. As of today Pipex also has around £20 million of cash in the bank.

Said Mr Rickards, who will be joining the enlarged company: "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."

Said GX Networks chairman, Peter Dubens: "This is an important acquisition in the development of GX Networks as it allows us to become cash flow positive immediately and it enables us to rebrand the entire group as Pipex, which is one of the strongest brand names in the sector. Furthermore, it will improve the mix of products that we sell, as Pipex has established a large broadband customer base."

Last month, GX Networks bought Firstnet Services Ltd - the company that acquired fixed wireless broadband outfit Liberty Broadband (aka Tele2 UK) earlier this year - for £4.3 million.

The deal means that GX Networks has now added wireless broadband to the stable of products it can supply punters.

In July, GX Networks acquired XTML Limited and Compulink Information eXchange Limited, which were previously part of the Telenor Business Holdings UK Limited Group.

In October last year Zipcom acquired Transigent through a reverse takeover before changing its name to GX Networks Plc in March 2003. ®

Related Stories

GX Networks buys Firstnet
GX buys CIX, XTML LTD

Intelligent flash storage arrays

More from The Register

next story
YOU are the threat: True confessions of real-life sysadmins
Who will save the systems from the men and women who save the systems from you?
Download alert: Nearly ALL top 100 Android, iOS paid apps hacked
Attack of the Clones? Yeah, but much, much scarier – report
Broadband sellers in the UK are UP TO no good, says Which?
Speedy network claims only apply to 10% of customers
Virgin Media struck dumb by NATIONWIDE packet loss balls-up
Turning it off and on again fixes glitch 12 HOURS LATER
Ofcom snatches 700MHz off digital telly, hands it to mobile data providers
Hungry mobe'n'slab-waving Blighty swallows spectrum
Fujitsu CTO: We'll be 3D-printing tech execs in 15 years
Fleshy techie disses network neutrality, helmet-less motorcyclists
Facebook, working on Facebook at Work, works on Facebook. At Work
You don't want your cat or drunk pics at the office
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
The hidden costs of self-signed SSL certificates
Exploring the true TCO for self-signed SSL certificates, including a side-by-side comparison of a self-signed architecture versus working with a third-party SSL vendor.
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.