AO World se­cure Mo­bile Phones Direct deal

Manchester Evening News - - NEWS -

ON­LINE elec­tri­cal re­tailer AO World is set to boost its mo­bile of­fer­ing af­ter agree­ing to ac­quire Mo­bile Phones Direct (MPD) for £32.5m.

The deal is a step for­ward for the Bolton com­pany as it looks to de­velop an ex­pand its ser­vices and adding ‘com­pli­men­tary cat­e­gories’.

The acquisition will sig­nif­i­cantly in­crease the scale and so­phis­ti­ca­tion of AO’s mo­bile propo­si­tion, which is cur­rently lim­ited to the sale of handsets only.

MPD is an on­line-only re­tailer of mo­bile phones based in Thatcham, near Read­ing.

It op­er­ates through two on­line brands, Mo­bile Phones Direct and Smart Phone Com­pany. Both web­sites had 13.6 mil­lion vis­i­tors in 2017, up from 11.6 mil­lion in the pre­vi­ous year.

MPD gen­er­ated rev­enues of £121.7m and EBITDA of £5.5m in the year ended March 31, 2018.

Steve Caunce, CEO of AO World, said: “This deal rep­re­sents a sig­nif­i­cant step for­ward in our strat­egy of de­vel­op­ing our grow­ing range of on­line elec­tri­cals and adding new com­ple­men­tary cat­e­gories.”

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