CARPHONE Warehouse has announced a £236m deal to buy the UK business of troubled broadband firm Tiscali.
Carphone, which owns TalkTalk, said the takeover would give it 4.25m broadband subscribers and seal its position as the UK’s biggest residential broadband provider.
The deal raises hopes for Tiscali, which is said to be on the brink of collapse, and had seen previous attempts to sell its UK business fall through.
Carphone said Tiscali’s customers would continue to receive uninterrupted phone and broadband service, while their email addresses would remain the same.
Tiscali, with about 1.7m UK broadband customers, saw its shares suspended in March after BSkyB pulled out of takeover talks over the UK arm.