Dixons Carphone on Wednesday agreed to sell its German handset retail outfit, The Phone House Deutschland, to Drillisch.
The transaction is slated to close in May, at which point U.K.-based Dixons Carphone will take a 3% stake in Drillisch, a reseller of telecoms services and a mobile virtual network operator (MVNO) headquartered in Maintel, near Frankfurt. Dixons Carphone will also be eligible for payments from future excess cash flows.
The Phone House Deutschland operates 30 own-brand stores and a further 50 for incumbent Deutsche Telekom. It is one of the country’s largest distributors of handsets, fixed and mobile contracts, and accessories. It generates revenue of approximately €350 million per year.
Dixons Carphone said the sale is in line with the group’s strategy of focusing on market leadership positions while engaging in other markets through partnerships via its managed services division, Connected World Services (CWS).
With that in mind, the company has struck a partnership deal with Drillisch that covers the provision of mobile phone insurance. There is "scope to expand this into further services in future," said Sebastian James, CEO of Dixons Carphone, in a statement.
"We believe that this is the start of a strong, healthy and growing business together and I could not be more pleased to be working with this excellent team," he said.
