02 July 2018
| James Pearce
A £175 million deal that would have seen UK-based telecoms firm TalkTalk offload its direct B2B unit to wholesaler and reseller Daisy has collapsed, according to a stock exchange filing.
TalkTalk announced its plan to offload its B2B business,
to Daisy in May. The deal would have seen 80,000 direct
enterprise customers transfer to Daisy, who already operates as
a reseller of TalkTalk connectivity.
According to a filing issued to the London Stock Exchange,
TalkTalk will now continue to manage its own B2B business.
Reports claim the deal has now been scrapped after failing
to agree terms for the unit, which comprises of around 20% of
TalkTalk’s overall B2B revenue. This came despite
Daisy conducting due diligence on the acquisition since
Daisy has a record of making acquisitions, having
bought EE direct partner Voice Mobile at the end of June.
The company, which started in 2001 and has carried out over
fifty takeovers, went private in 2014, has been very
acquisitive over the last few years since it was taken out of
its public status in 2014 by the private equity companies
Toscafund and Penta Capital, which paid $494 million in
It has itself been linked to a potential £1.5 billion
sale, though it refused to comment on rumours that Daisy
founder Matthew Riley was looking at a possible listing.
Riley recently took control of the day-to-day running of the
business after CEO Neil Muller quit. Muller had been with
Daisy for more than three and a half years, but the company
announce his departure at the end of last month. It is unclear
if Muller’s departure and the collapse of the
TalkTalk deal are connected.
In a statement to the LSE, TalkTalk said: "TalkTalk and The
Daisy Group have jointly agreed not to proceed with the
proposed sale of TalkTalk's direct B2B business, as announced
on 24 May 2018.
"TalkTalk will continue to manage all direct B2B business,
providing uninterrupted services for customers. FY19 EBITDA
guidance remains at the originally stated 15% year-on-year
growth (FY18 £233m). Daisy remains an important,
long-term strategic partner for TalkTalk."
mergers and acquisitions,