May 21, 2022

TalkTalk agrees to acquire 200-strong network provider

TalkTalk has entered into an agreement to acquire Virtual1, a wholesaler of broadband services.

The Salford-headquartered group, which returned to private hands in a £1.1billion deal in March 2021, said the deal was an “exciting opportunity” for it to d scale as a national provider of Ethernet (also known as EAD or leased line) services and to “strengthen its capabilities and market position”.

Virtual1 CEO and Founder Tom O’Hagan will continue to lead the 200-person standalone company within the TalkTalk Group.

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Tristia Harrison, CEO of TalkTalk, said: “Since taking the company private in February 2021, we have sought to invest to strengthen both our B2B and wholesale platforms.

“As all businesses continue to face increasing demands for high bandwidth services, we see tremendous benefits in acquiring Virtual 1 by coupling our nationwide network with their market-leading APIs and software capabilities. .

“Tom O’Hagan, CEO and Founder, and his excellent team of 200 will continue to lead the standalone business and we look forward to welcoming them to the TalkTalk family.”

Mr. O’Hagan added, “Virtual1 has created an award-winning self-service portal and API suite to enable enterprises to virtually manage their networks with complete real-time bandwidth visibility, reducing manuals and partner costs, while improving the customer experience.

“We are excited to be able to extend the reach of our solutions and increase our scale as a network provider with TalkTalk.”

Lazard & Co Limited acted as financial advisor to TalkTalk in connection with the transaction.

Arma Partners acted as financial advisor to Virtual1 on the deal, alongside Latham & Watkins as legal advisor.