Deal between Talktalk & the Daisy Group to sell off B2B business cancelled

Wednesday, July 4th 2018

In the beginning of May 2018, TalkTalk had planned to sell their direct B2B business for £175 m to The Daisy Group. Both of them had also signed a deal with terms to transfer existing customers of Talktalk's direct B2B business to Daisy. It includes SME, SoHo and large enterprise customer base of around 80000 customers. The deal was agreed with the terms of contract to complete it by the end of July 2018. Since Daisy is Talktalk's existing strategic partner, all the customers would get served by the TalkTalk even after sale. Hence TalkTalk will retain their B2B business with its strategic partner Daisy and also grow its Wholesale business.

Now TalkTalk has informed last week that they has entered into a joint agreement with Daisy Group for discontinuing the proposed sale of its direct B2B business customers. The decision has happened because of the Daisy's which lost its CEO Neil Muller in recent for his failure to sell off the businesses.

The action by the Daisy Group was taken after failure of several failed attempts of his approach in finding a buyer for the business worth £1bn in the last 2 years. The CEO's approach was achieving the company's growth by acquiring the businesses and (example TalkTalk’s B2B business for £175m), whereas finding a new buyer did not become easy. Hence now the deal between Talktalk and the Daisy has come to an end.

A statement by TalkTalk:
Both the groups (TalkTalk and The Daisy) have jointly come to an agreement for not to proceed with their proposed sale which was originally declared on May 24 of this year. The direct B2B business will be continued to be managed by the TalkTalk with the continued services for its B2B customers. For financial year 2019 EBITDA guidance will remain at 15% year-on-year growth as stated earlier (Fin.Year 2018 - £233m). The long run strategic partner, The Daisy will remain in the same position with Talktalk.

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