TalkTalk has announced plans this morning to sell its direct B2B business to Lancashire-based Daisy Group.
The two companies have signed heads of terms on the £175m deal, which includes around 80,000 SoHo, SME and large enterprise clients, representing around 20% of TalkTalk’s business to business income.
Daisy has been granted a period of exclusivity to conclude the transaction, which is expected to be completed by late July.
“Last year we set out a strategy to radically simplify the business, focussing on fewer priorities that offer the best growth potential. TalkTalk has real strength in the Partner and Wholesale markets, where we have scale and a clear leadership position. It represents the vast majority of our revenue and profit and we see real opportunity to continue growing at pace,” explained TalkTalk’s chief executive, Tristia Harrison.
“This proposed deal would allow us to focus on growth in those core B2B markets, whilst also removing significant complexity and cost from the business. As an existing strategic partner, Daisy is well placed to serve all direct customers, who would remain on our network and provide ongoing revenue.”
Daisy is already a strategic partner of TalkTalk, which means customers would continue to be served by the existing network.
