TalkTalk has agreed to acquire Virtual1, a London-based broadband network service provider.
The agreement will provide Virtual1 with the opportunity to “significantly increase” its scale as a national provider of Ethernet solutions and will strengthen the capabilities and market position of both companies.
Virtual1 CEO and founder Tom O’Hagan will continue to lead the standalone company, which employs 200 people, within the TalkTalk Group.
Tristia Harrison, CEO of TalkTalk, said: “Since taking the business private in February 2021, we have sought to invest in strengthening both our B2B and wholesale platforms.
“As all businesses continue to face increasing demands for high bandwidth services, we see tremendous benefits in acquiring Virtual1 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.”
Tom O’Hagan, Founder and CEO of Virtual1, said, “15 years ago I sold my house and quit my job to start my own business. Even with my great ambitions, I must admit that at the time I never imagined what Virtual1 would become.
“I am immensely proud of what the company has achieved and the fact that we have built one of the largest wholesale connectivity providers in the UK with a national network of almost 300 unbundled exchanges. None of this would have been possible without the fantastic team I have around me and the incredible clients we are privileged to serve.
He added, “With our smart software and network-wide TalkTalk, we’re going to be an unstoppable force in the channel. This agreement will change the market and I look forward to helping our customers grow with breakthrough connectivity solutions across a network of 3,000 exchanges.
The deal provides an exit for Virtual1’s investment partner, BGF, which has backed the company since 2016.