Tiscali confirms Tiny Online buy-out
Another one bites the dust
Tiscali has acquired Tiny Online Ltd - the ISP of Tiny Computers - for E13 million (£8 million) in cash, the Italian giant confirmed this afternoon.
There was speculation that a deal was imminent following an Italian newspaper report earlier today.
As part of the deal Tiny Computers and Tiscali have inked a long-term distribution agreement in which Tiscali becomes the retailer's exclusive ISP.
With 143 showrooms nation-wide selling around 400,000 PCs a year, that deal could be key to Tiscali UK growing its user numbers without resorting to expensive buy-outs.
In a statement Renato Soru, chairman of Tiscali, said: "We consider this new acquisition and the distribution agreement with Tiny Computers a big growth opportunity in the UK, which represents a crucial market for Tiscali's European strategy."
While Tiscali UK will regard this as further good news for its bid to become a top-three player in all European markets, those who work at Tiny Online might not be quite so thrilled by today's news.
Tiscali's record of not retaining staff once it has acquired an ISP is legendary. ®