Opal Telecom’s acquisition of UK Telco will significantly expand V Networks’s dealer base, it said last week.
V Networks, which is a wholly owned subsidiary of Carphone Warehouse reseller unit Opal Telecom, will take ownership of UK Telco’s 2,500 end users and 60 dealer partners as part of the UK Telco deal, understood to be worth between £2.5 million and £3 million.
The acquisition will result in job cuts at UK Telco as Opal Telecom has been unsuccessful in extending the lease of the Hagley offices in the West Midlands. Staff will be moved to Opal Telecom’s head office in Warrington. Opal Telecom, led by Paul Lawton, has not confirmed how many roles are at risk, nor which departments will be affected. However, Opal Telecom said it will create new roles to compensate.
Opal Telecom head of the reseller channel Andy Hollingworth (pictured) said Opal Telecom is in acquisition mode and will continue to buy out other fixed line providers and resellers in due course. Hollingworth said: “The acquisition results in our partners knowing we remain a significant player in the market. This expands our reach to end users. The advantage of buying a reseller is that it gives us good access to customer data so integration is more fluid and seamless.”
V Networks operations manager Nick Shraga added: “Opal’s acquisition of UK Telco makes V Networks one of the largest fixed line providers in the dealer market.”
The UK Telco purchase follows Opal Telecom’s acquisition of reseller TAG in March this year for £752,360, which in turn followed a deal for V Networks itself.