High street giant Dixons Carphone today announced plans to sell its German phone retail business to telecoms firm Drillisch.
The FTSE 100 retailer said it will dispose of The Phone House Deutschland before the end of May, in a deal under which Dixons Carphone will receive a three per cent stake in Drillisch, with potential further deferred payments from future excess cash flows.
Shares in the company were trading up two per cent at 445p in mid-morning trade today.
The move follows a period of restructuring for the German business and is in line with the group's broader strategy of focusing on market leadership positions, as well as engaging in other markets through partnerships with its Connected World Services division.
"Having previously announced the disposal of our retail operations and the closure of our wholesale hardware operations in Germany, today's announcement is a positive move to secure the future of the significant remaining operations within The Phone House Deutschland through a partnership with Drillisch, a highly professional, successful and growing business," Sebastian James, chief executive of Dixons Carphone, said:
"At the same time, this transaction enables Drillisch to broaden its horizons into wholesale connection and dealer operations."
Dixons Retail and Carphone dialed up a £4bn merger last year in a bid to take on rivals such as AO World and John Lewis by offering everything from products to services, such as a subscription to Netflix or Sky. It also wanted to tap into the burgeoning market for the "internet of things" - whereby everyday devices become increased interconnected.
It believes the Internet of Things market could be worth up to £5bn to the company.