Pipex Internet, an U.K. ISP will be acquired by GX Networks, an UK network operator, for around GBP 55 (EUR 78.5) million from the Rickards family. GX Networks plans to change its name to Pipex Communications following completion of the deal in order to take advantage of the Pipex brand name. The move still needs to be approved by shareholders at an EGM scheduled for 27 October 2003. GX Networks plans to fund the deal partly using proceeds from a GBP 27.7 million share placement, along with a GBP 15 million debt facility and around GBP 10 million of existing cash resources. The deal represents the fifth acquisition by GX Networks during 2003. In the fulll year to 31 May 2003, Pipex made an EBITDA of GBP 9.9 million, on turnover of around GBP 31.6 million. The company has 119,000 customers and claims a 6% share of the UK ADSL market, as of end-June 2003. GX Networks says that the latest acquisition will increase its UK customer base to over 140,000 users.
