The UK consumer electronics retailer Dixons Retail has agreed to buy the remaining 22 per cent stake in Pixmania from Pixmania's founders, Steve and Jean-Emile Rosenblum, for approximately £8m in cash.
In April 2006, Dixons purchased a 77 per cent stake in Pixmania for a total cash consideration of €266m. The remaining 1 per cent is controlled by the French company Club Fotovista.
Pixmania’s e-Merchant platform provides the basis for Dixons’s UK and Ireland multi-channel operations, as well as for a number of other third-party clients. This acquisition will enable Dixons to take full day-to-day control of the business.
Sebastian James, CEO of Dixons, said:
I am pleased that we have been able to acquire substantially the remainder of the Pixmania business. Pixmania is the heart of our very successful UK multi-channel business and this will ensure the stability and flexibility to continue to improve the experience for the customers of that business.
Pixmania’s own trading business continues to face strong market headwinds and this move will also allow us to manage the company in line with the group’s wider strategy and take the decisive actions necessary to improve its performance.
For the full year ended 28 April 2012, Pixmania reported a turnover of £665m and an underlying operating loss of £20m.