Dixons Groups acquires photographic and online consumer retailer

Dixons Stores Group International (DSG) is to acquire a controlling 75 per cent interest in Fotovista Group, for a total cash consideration of €266m (approximately £185m).

Headquartered in Paris, Fotovista is the parent company of Pixmania, a European e-tailer of digital photographic and consumer electronic products.

Pixmania's operations cover all countries in which DSG has a retail presence, with the addition of Austria, Belgium, Estonia, Germany, Holland, Latvia, Lithuania, Luxembourg, Portugal, Slovakia, Slovenia and Switzerland.

Fotovista's operations also include online digital photo services, a photographic operation in France and specialist studio and portrait photography services in France and Belgium.

The news follows DSG's announcement last week that it plans to remove the Dixons brand from the high street and turn it into a pure e-commerce operation.

John Clare, group chief executive of DSG, said: "Last week I signalled our ambition to build a strong leadership position in European electrical e-tailing. This acquisition represents a significant step towards realising that goal.

"We will be supporting Pixmania's growth plans with our buying, supply chain, service and back office infrastructures to enable it to become a very much stronger pan-European business in a broader range of electricals and related products over the next few years," he added.

Completion of the acquisition is subject to approval by the European Union Competition Authority and is expected to take place before the end of June. Fotovista will be consolidated into DSG international's accounts from completion and is expected to be earnings enhancing in the first year.