TalkTalk’s sale of B2B unit to Daisy Group called off after pair fail to reach terms

2 Jul 2018

Alternative British broadband provider TalkTalk’s plan to sell its direct business-to-business (B2B) unit to Daisy Group has collapsed, according to the Financial Times. In May 2018 TalkTalk announced plans to sell its B2B business to Daisy Group for a total consideration of GBP175 million (USD231 million) and, as reported by CommsUpdate, at the time it was revealed that the pair had signed a Heads of Terms agreement, under which all existing TalkTalk direct B2B customers, including around 80,000 SoHo, SME and large enterprise clients, would have been transferred. Now, however, with Daisy reported to have been carrying out due diligence on the B2B unit since the deal’s announcement, the pair have scrapped the deal after failing to agree final terms. One person with direct knowledge of the talks said it was ‘abnormal’ for Daisy to pull out of a deal without a good reason, though an official explanation for the breakdown in negotiations has not been forthcoming from either party.

United Kingdom, Daisy Group, TalkTalk (incl. FibreNation)