Salford-headquartered communications giant TalkTalk has agreed to acquire SSE Phone & Broadband from OVO Energy.
The deal is expected to be completed in the autumn and will see the company take on an unspecified number of new customers. It has also not been revealed how much the deal is worth.
The move comes after reports emerged last month that a move to takeover TalkTalk, the internet giant that went back into private hands in a £1.1bn deal last year, is being eyed up by Virgin Media O2. The potential deal could value the company at in the region of £3bn.
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In 2020, SSE Phone & Broadband was acquired by OVO Energy as part of its purchase of SSE Energy Services from SSE plc.
SSE, which owned SSE Phone & Broadband prior to its sale to OVO Energy in 2020, has given permission for the SSE brand to be used under licence until April 2023 to support a "smooth transition" to TalkTalk.
A TalkTalk spokesperson said: "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."
OVO Energy added: "The sale is part of OVO’s strategy to focus on the decarbonisation of the home and its ambitions through Plan Zero to become a net zero business.
"This provides the best result for SSE Phone & Broadband customers and the team due to TalkTalk’s expertise and focus in the area. Employees have been informed of the changes and consultations will continue with trade unions and employee representatives."
TalkTalk was founded by Sir Charles Dunstone and was spun out of Carphone Warehouse in 2010. It is currently led by chief executive Tristia Harrison.
In its most recently available accounts, for the 12 months to February 28, 2021, TalkTalk reported a revenue of £1.3bn, down from the £1.5bn from the prior year. However it fell to a pre-tax loss of £11m compared to a profit of £131m.
TalkTalk has more than four million broadband customers and over 2,000 employees.
The group relocated its headquarters from London to Salford in 2019 and also provides landline, TV and mobile services. It supplies services to consumers through the TalkTalk brand, to businesses through TalkTalk Business and by wholesaling to resellers.
The company is currently owned by Tosca IOM, is a company formed at the direction of Toscafund Asset Management LLP and Penta Capital LLP.
Toscafund Asset Management is a London-based investment firm which has stakes in the likes of Ted Baker, Stobart Group and Speedy Hire. Before the acquisition, it was TalkTalk's second largest shareholder.
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