UK ISP TalkTalk Take Controlling Stake in Telecom Acquisitions Ltd

Consumer and wholesale broadband provider TalkTalk has today announced that they’ve agreed a new “strategic partnership” with Telecom Acquisitions Ltd, which manages a multitude of broadband ISP brands and products (e.g. Home Telecom, Fleur Telecom, Hive Telecom and Eclipse Broadband).

The announcement states that the new partnership is designed to deliver the growth of TAL through planned organic growth, while also continuing their successful acquisition of small to medium residential customer bases, although the company’s day-to-day operations will continue as they do today.

A quick look at TAL’s records on Companies House confirms that the TalkTalk Group has just been named as a party holding “significant control” over the business (i.e. they hold more than 50% but less than 75% of shares in the company). Suffice to say, this sounds more than like an acquisition or merger than a partnership.

As a result of this agreement, Nick Gunga, MD of TalkTalk’s Consumer Wholesale Services division, will join the board to support and guide TAL’s future growth.

Nick Gunga said:

“We are pleased to be increasing our support to the partnership with Telecom Acquisitions (TAL) as it continues to grow. This is part of our continuing long-term growth strategy of TalkTalk Consumer Wholesale Services, the fastest-growing wholesale provider in the market.”

Nigel Barnett, TAL CEO, comments:

“Over the last 30 months we have made four acquisitions supported by aggressive organic growth, with the whole industry focusing on fibre to the property to be aligned with a company with presence in over 3000 exchanges across the country and agreements in place with the leading fibre Altnets means we can offer our clients the very best service from any major provider.”

End.

UPDATE 3:38pm

We understand that the deal is a Joint Venture between the two sides, albeit with TalkTalk now holding the controlling stake. In practice, the only change is that Nick Gunga is now on the board of TAL. There will be no other staff movements.