Person to Person acquired by Eircell in deal worth about €25m

Eircell has bought out Person to Person (P2P), the mobile phone retailer, in a deal which values the business at almost £20 million (€25.39 million).

Eircell has paid almost £10 million for 49 per cent of P2P, a high profile mobile phone retailer. Eircell already owned a 51 per cent stake in P2P for which it paid £9.5 million in October 1998. It is understood that completion of the buyout was dependent on certain sales' targets being achieved.

Eircell, now part of Vodafone, said it was part of its ongoing strategy to expand its retail division. It now has more than 80 stores and will increase this figure to about 100 within the next year.

P2P has 20 stores and employs 120 staff. It was founded in 1996 and was owned by the Sigma group and its main shareholders were: Mr Tony Boyle, head of Sigma Wireless; Mr Peter Crowley, chief executive IBI Corporate Finance; and Mr Michael McGinley a director of Sigma.

P2P managing director, Ms Josephine Conaghan, who is a minor shareholder, said that her company's "philosophy" linked perfectly with Eircell's "emphasis on quality customer service and highlights the strong fit between the two companies".

Eircell has pursued a strategy of buying small mobile retail chains, which offer high street visibility for their products. Esat Digifone has pursued a similar strategy, albeit less aggressively. It owns the O'Hagan Technology chain of stores.

It also gives the company greater control over its distribution network, including how the products are marketed and sold. Eircell has attributed its strong growth in recent years, in part, to its retail outlets.

Eircell chief executive Mr Stephen Brewer said that consumers would want the type of personal service and expertise that retail operators offered as mobile phones became more complex and next generation phones came on stream. He said people may buy phones through the Internet, but retailers would still be crucial, over the next five to 10 years.