AO World is set to acquire the online phone retailer Mobile Phones Direct for £32.5 million as it looks to expand its offering.
The online electronics retailer, which already has a limited offering of handsets, said that the move represented the “logical next step” as the internet of things and connected devices become ever more prominent.
“This deal represents a significant step forward in our strategy of developing our growing range of online electricals and adding new complementary categories that customers want and expect from AO,” chief executive Steve Caunce said.
“Mobile Phones Direct already has a leading position within the UK online mobile phone market and is a business which is highly complementary to AO.
“In coming together, AO will achieve instant scale and be well-placed for future opportunities within a highly attractive and growing UK mobile phone market.
News of the acquisition follows an reports of an improving performance for AO World, which posted an eight per cent rise in UK sales in its first quarter, reflecting a strong start to its year in April and May.
It added that European sales jumped 46.2 per cent on a constant currency basis and that full year expectations were on track to be met.
AO World’s half year results for the six months ended September 30 are due to be published on November 20.