TalkTalk has announced the acquisition of SSE Phone & Broadband from OVO Energy. This strategic move aims to enhance TalkTalk’s service offerings and customer base.
TalkTalk, headquartered in Salford, has not disclosed the financial details of the transaction, which is expected to be completed by autumn. Upon finalisation, all customers and staff of SSE Phone & Broadband will be integrated into TalkTalk.
SSE Phone & Broadband, initially acquired by Bristol-based OVO Energy in 2020 as part of its purchase of SSE Energy Services, will continue to use the SSE brand under license until April 2023. This transition period aims to ensure a smooth handover of services to TalkTalk.
A spokesperson from TalkTalk expressed enthusiasm about the acquisition, stating, ‘We are delighted to be welcoming SSE Phone & Broadband customers and team to TalkTalk this autumn. As the country’s only scale affordable provider, we look forward to providing our high-quality service at the best possible value.’
The announcement follows recent reports of Virgin Media O2’s potential £3bn takeover bid for TalkTalk. Virgin Media O2, formed in June 2021 as a joint venture between Liberty Global and Telefónica, is considering the acquisition as a strategic expansion.
TalkTalk, founded by Sir Charles Dunstone and spun out of Carphone Warehouse in 2010, relocated its headquarters from London to Salford in 2019. Currently led by CEO Tristia Harrison, the company provides broadband, landline, TV, and mobile services to over four million customers. Despite reporting a revenue drop to £1.3bn for the year ending February 2021, TalkTalk remains a significant player in the telecommunications sector.
The company is currently owned by Tosca IOM, formed at the direction of Toscafund Asset Management LLP and Penta Capital LLP. Toscafund Asset Management, based in London, holds stakes in various firms, including Ted Baker and Speedy Hire. Before the acquisition, Toscafund was TalkTalk’s second-largest shareholder.
The acquisition of SSE Phone & Broadband by TalkTalk marks a significant development in the telecommunications industry, potentially affecting millions of customers and prompting further consolidation within the sector.
