BT grabs dabs.com

By Matt Whipp

Posted on 28 Apr 2006 at 11:45

BT has bought online retailer dabs.com.

The technology shop will become a wholly-owned subsidiary of BT and allow BT to use the channel to push its business, networking and support services as well as embark upon co-branding initiatives.

However, we were told that dabs.com will continue to operate independently and will not be rebranded.

A BT spokesperson told us: 'We have pretty ambitious growth plans for our networking and IT services for small and medium-sized businesses and residential customers,' and described the deal as a 'great fit' and opportunity that 'enables both parties to cross pollinate'.

Started in 1990, the Bolton-based retailer was originally the domain of the early technology adopter in terms of customers. It now employs more than 200 people and sells 15,000 products with some 1.4m registered users - a vast and different demographic.

In September it relaunched its web shop to cater for this more mainstream audience, undoubtedly making it more attractive to BT.

As well as expanding the range of products and services on offer, the deal will also have implications for dabs.com's territorial ambitions. It already sells into France and in September the company's Marketing Director Jonathan Wall told us it was eyeing territories in Europe and Scandinavia - in particular Sweden or Spain and countries in the Lowlands where broadband access is well-established.

BT told us that the buy would involve a 'strategic review of the businesses' that would include these expansion plans. Overseas business accounted for less than a tenth of its annual turnover in 2005, although it is a growing component of the business.

The financial details were not disclosed: dabs.com ended its 2005 year last March with revenues of £180 million and gross assets valued at £42million, according to BT. But BT declined to say how the acquisition will show up on its balance sheet.

Ian Livingston, chief executive of BT Retail, said in a statement: 'Dabs is a dotcom success story and one of the best companies in its field. dabs.com's outstanding expertise will boost BT's online power to sell innovative, value for money, communication and converged IT products and offer great service to a wide range of customers.'