Proving the Business Case for the Internet of Things

Dixons, Carphone Warehouse plot $5.88 billon merger to address IoT

Iain Morris
May 15, 2014
 
UK retailers Dixons and Carphone Warehouse are poised to announce plans for a £3.5 billion ($5.88 billion) merger aimed at addressing new opportunities in the emerging Internet of Things (IoT) space.

According to numerous press reports, the two companies plan to combine their resources to take advantage of new opportunities created by convergence of the consumer electronics and connected-devices markets.

Dixons (Hemel Hempstead, UK) sells a range of electrical appliances in its high street stores, while Carphone Warehouse (London, UK) is one of the country’s best-known retailers of mobile phones and tablets.

According to the UK’s Financial Times newspaper, the deal would be structured as a 50:50 merger with Carphone Warehouse founder Charles Dunstone becoming chairman of the enlarged group.

Sebastian James, the chief executive of Dixons, would likely remain in his post following the merger, reports the Financial Times.

The tie-up would create a group with a turnover of nearly £12 billion and more than 3,000 stores up and down the country.

In 2013, reports the Guardian newspaper, Dixons made pre-tax profits of £94.5 million on sales of £8.2 billion, while Carphone Warehouse reported a net profit of £59 million on revenues of £3.7 billion.

Analysts cited by the press say the merger would allow the companies to save as much as £100 million in operational costs by closing some of their stores, and would ultimately be well positioned as the IoT market begins to take off.

“A couple of years ago the IoT sounded like science fiction but now it is actually happening,” said Bryan Roberts, an analyst with Kantar Retail, as quoted by the Guardian. "You can buy an internet enabled washing machines or a fridge that triages your fresh food."

Back to May Archives
The M2M Zone serves as the catalyst to the embedded systems community to gather knowledgeable and up-to-date information. From telematics to smart grid to telehealth, the M2M Zone understands that machine-to-machine technologies stretch across multiple industries to create a dynamic M2M eco-system.
 
Through our events, newsletters and webinars, we bring together end clients from these vertical industries as well as cellular network operators, module manufacturers, short-range wireless developers, and systems integrators, not just to provide information, but to offer a forum to meet and speak with your prospects and customers. 

For more information contact: info@m2mzone.com