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Dominion buys the Phone House for €55M


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Integral service around a transaction
BY : Diego GutiérrezJuly Mon, 2017
The Basque group Global Dominion has reached an agreement with the British company Dixons Carphone to buy The Phone House España, a distributor of telephony devices and services, for 55 million euros.

Dominion buys the Phone House for €55M

Dominion buys Phone House

For Dominion, this purchase represents the opportunity to have nearby points of sale, where the consumer centralises the growing demand for technological services. In addition, this purchase will allow Dominion to lead in the provision of value-added services for the home, under the name of "smart houseDominion is committed to digitalisation as a business model. Currently, Dominion is already consolidated in industrial technology services.

The transaction, pending clearance from the competition authorities, will be paid in two instalments, one at closing and the second in January 2018. Phone House closed 2016 with a gross operating profit (ebitda) of EUR 10.3 million.

About Dominion

Dominion is the technology subsidiary of Cie automotive, which went public in April 2016. The company offers IT services in various sectors. Its portfolio is very diverse and includes installation, maintenance and repair services for industrial electronic components. It is currently active in 28 countries.

With a presence in more than 30 countries, more than 1,000 customers and 5,000 employees, Dominion 612 million last year, 17 % more than in 2015.

Dominion has just won the "Best IPO of 2016" award from El Economista. The company has achieved a revaluation of 14.20% in 2016; and over 40% between the IPO and the current date.

During the award ceremony, Mikel Barandiaran, CEO of Dominion, highlighted "the great importance of going public for a company like Dominion; there is a before and an after and this is noticeable at all levels: in attracting talent, in M&A operations, in relations with clients and suppliers, in visibility with the media, in short, in the relationship with the society around us".

Since Dominion's IPO, the company has made four acquisitions: The last of these, the American ICC, was added to the perimeter in the second half of November last year. The previous acquisitions, the American company Commonwealth Dynamics, and the Spanish companies Abantia and Protisa, in May and June respectively. Once the effect of the presence of these new companies is isolated, organic growth is around 10% compared to the first quarter of 2016. This is well above the sector's average growth and exceeds the 7% target set out in the medium-term strategic plan.

Global Dominion already owned Yourphone, in the distribution of telephony services in Spain.

About The Phone House

The Phone House, a distributor of mobile phone products and services, belonged to the British company Dixons Carphone. The company had been in the red since 2015 and Dixons had been looking to sell it for some time. In the bid to acquire the company, Dominion has had as a rival Mediamart, one of the main rivals of The Phone House.

The Phone House has 500 shops and more than 2,000 employees in Spain.

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