AO World secure Mobile Phones Direct deal
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.”