Fat Pipex deal for fat pipe company

Pipex is to be acquired by GX Networks in a deal worth £55m, the company has announced.

Telcoms network operator and business broadband supplier GX Networks will buy the company from its present owners, the Rickards family, who own 100 per cent of Pipex shares, while David Rickards, MD of Pipex will join the board. The result of the acquisition will be a new shared brand, Pipex Communications.

Pipex currently holds around six per cent of the UK broadband market with a turnover of £31.6m for the last financial year. In order to finance the agreement, GX Networks will finance the deal with a £27.7m share placement, as well as £10m in cash and a £15m debt facility.

Mike Read, CEO of GX Networks, said in a statement: "This acquisition represents a tremendous milestone in the development of our business."

The deal is subject to shareholders approval, which will be decided at an EGM on 27 October.