TalkTalk has confirmed that it will not pursue the sale of its direct B2B business to Daisy Group.
In a short stock exchange announcement, the U.K. telco said the decision to cancel the sale was a joint one between itself and Daisy Group, but it did not elaborate on the reasons behind it.
“TalkTalk will continue to manage all direct B2B business, providing uninterrupted services for customers,” the operator said. “Daisy remains an important, long-term strategic partner for TalkTalk.”
TalkTalk announced in May that it planned to sell the unit to Daisy for £175 million (€198 million). The deal included the transfer of 80,000 SoHo, SME and large enterprise customers.
At the time TalkTalk said it would enter into a period of exclusivity with Daisy to finalise the contract with a view to completing the deal in late July.
The agreement fit with TalkTalk’s strategy to focus on fewer business areas. The telco said shedding its direct B2B customers would enable it to concentrate on its partner and wholesale markets, where is generates the bulk of its B2B revenue and profit. Daisy is already a TalkTalk partner and had the deal gone ahead it would have continued to serve the B2B customers it acquired using TalkTalk’s network, thereby generating revenue for the latter.
The collapse of the deal came just days after Daisy Group announced two acquisitions: B2B voice, mobile, data and video communications reseller DV02, and EE direct partner Voice Mobile. It said both deals would enable it to maintain and grow its private and public sector customer base.- Total Telecom