Broadband giant plans sale of business-to-business arm
Recent reports indicate that privately owned telecommunication group TalkTalk is working to sell its corporate arm, which currently serves over 80,000 business customers.
The telecoms company has hired bankers to oversee the sale of its dedicated business-to-business division as part of a deal that financial analysts anticipate could carry a £200m price tag.
A report from Sky News recently uncovered that the private company is in presently involved in the early stages of the process to sell on the division, known as TalkTalk Business Direct. Customers of the service range from small businesses to corporate entities.
The TalkTalk Business Direct division has earned a reputation for being one of top independent providers for data connectivity for the business sector. According to an insider from the industry, any successful sale would encompass a long-term wholesale agreement delivering preferential access to TalkTalk’s network.
The corporate arm of TalkTalk earmarked for sale has recorded annual revenues of more than £85m and earnings before interest, depreciation, tax and amortisation come in at over £17m.
In 2022, TalkTalk was reportedly in the crosshairs of many of its rivals in the telecoms industry rivals, with Virgin Media O2 and Vodaphone seeking to take over the whole group. Founded by Sir Charles Dunstone, the entrepreneur behind Carphone Warehouse, TalkTalk comprises three different divisions, including the business-to-business operation.
It also owns a direct consumer unit of 2.5 million customers, as well as a wholesale platform of additional non-TalkTalk residential and business customers.