AO World buys IP rights from mobile phone retailer A1 Comms for £2.2m

15th Feb 2024 08:13

(Sharecast News) - AO World jumped on Thursday, having announced after the close of markets on Thursday that it had the bought intellectual property rights of mobile phone retailer A1 Comms from administration for £2.2m in cash.

The deal is mainly for the rights in and to the websites www.affordablemobiles.co.uk and www.buymobiles.net, as well as the Samsung url www.mobileshop.com.

"As AO seeks to expand its mobile proposition, the acquisition of the brands and platforms will provide AO with expertise and synergies that will accelerate this ambition," it said. "AO is also pleased to have saved 73 jobs through the transaction."

Broker Shore Capital, which rates AO at 'hold' said: "At first glance the acquisition appears sensible given the low valuation and lack of obligation to take ownership of stock/contract assets.

"Inferred from A1 Comms' revenue generation, the group drives good customer volume which could unlock central cost synergies when combined with AO's existing mobile business, www.mobilephonesdirect.co.uk."

At 0810 GMT, the shares were up 3.6% at 90.35p.