The deal sees the 40-strong company become a key part of Opal Business Solutions – the business-to-business network division of the Carphone Warehouse group.
The proceeds of the sale, which have not been disclosed, are to be shared amongst AltoHiway's senior management team and 40 staff.
As part of the deal, company founder, Richard Sharpe, will relinquish his role as managing director and other key members of AltoHiway will join Opal.
Sharpe said: “We identified some time ago that to develop AltoHiway we would need to find a strong UK partner that could leverage all the key strengths of AltoHiway's people, solutions, customer focus and quality of service.
“Carphone Warehouse proved to be the best suitor by a long way and what could easily have been a lengthy and complex process was made quick and easy by Rory and the team at TNP.”
AltoHiway was advised on the deal by chartered accountants The Norton Practice (TNP).
Rory Kindlon who led the TNP team said: “AltoHiway was one of the last remaining 'quality' independent ISPs of any size in the UK and its acquisition has proved an excellent fit for Opal in terms of product and service, customers, culture and growth profile.
“Although there were a number of other parties interested in pursuing the deal, it was clear once negotiations got underway that Carphone Warehouse offered the best overall future for the staff and customers of AltoHiway.
“I am delighted for everyone at AltoHiway that such a satisfactory deal has been achieved.”
© Crimson Business Ltd. 2006