Dixons Carphone has sold its German MVNO and retail arm Phone House Deutschland to local MVNO Drillisch.
The retailer will dispose of the unit by the end of May with the move marking a period of restructuring for the German business following the company’s disposal of retail and wholesale hardware operations in the country. This is the second time the Phone House have been under review after Carphone Warehouse sold the French retail unit in 2013 as part of a restructure to focus on its core business.
The deal will see the high street giant sell the unit for a combination of shares and future cash flows, with Dixon Carphone taking a three percent stake in the company.
Drillisch AG is one of the largest network-independent telecommunications providers in Germany, with a current subscriber base of 2.1 million.
Sebastian James, group chief executive of Dixons Carphone, said: ‘This transaction enables Drillisch to broaden its horizons into wholesale connection and dealer operations.
‘We have also agreed a long-term service contract, for the provision of insurance, with scope to expand this into further services in future, through our Connected World Services division. We believe that this is the start of a strong, healthy and growing business together.’
Dixons Carphone, the result of a £4bn merger last year, currently operates 121 owned Phone House stores, with 1,162 branded stores across Europe, and despite the announcement the firm insist that the brand will not be scrapped. Instead the deal will give Drillisch access to more than 1m Phone House subscribers, generating annual sales of €350m (£251m).