AO completes £38.1m acquisition of Mobile Phones Direct
Bolton-based online retailer AO World has completed its £38.1m acquisition of Mobile Phones Direct (MPD).
Back in November the company said it had “conditionally agreed” to acquire MPD, one of the country’s leading online-only mobile phone retailers operating Mobile Phones Direct and Smart Phone Company.
In 2017, the two sites had around 13.6m visitors, generating revenues of £121.7m.
The deal comprised £20.9m in cash and £17.2m in shares.
“This deal represents a significant step forward in our strategy of developing our growing range of online electricals and adding new complementary categories that customers want and expect from AO,” explained Steve Caunce, CEO of AO World Plc, in November.
“Mobile Phones Direct already has a leading position within the UK online mobile phone market and is a business which is highly complementary to AO. In coming together, AO will achieve instant scale and be well-placed for future opportunities within a highly attractive and growing UK mobile phone market."
The change of control of MPD was approved by the Financial Conduct Authority earlier this month.