# BT acquires TalkTalk businesses for c.£400m

- Link: https://www.directorstalkinterviews.com/bt-acquires-talktalk-businesses-for-c-400m/4121265302
- Published: 2026-10-05T07:06:00+01:00
- Author: Amilia Stone

**[BT Group plc](https://www.directorstalkinterviews.com/ftse-company/bt-group-plc/bt-a.l)**(
LON:BT.A) has announced that it has acquired TalkTalk Telecommunications Limited
and PlatformX Communications Limited out of the administration of TalkTalk Group
on a debt-free basis. The estimate of the total cash impact in FY27 is c£400m, comprising
both consideration and other cash impacts.

After a prolonged, but ultimately unsuccessful, sale process for TalkTalk’s consumer
and wholesale (PXC) operations, BT recognised the risk to the country, and especially
vulnerable customers and key public services, should the company collapse. BT therefore
approached the Directors of TalkTalk and offered to step in immediately, in the 
public interest, to protect customers and critical national infrastructure.

By acquiring the business out of administration, BT will be providing much needed
and immediate reassurance for TalkTalk’s employees, its 1.5 million retail customers
and its 1 million wholesale customers across the UK. This includes vulnerable households,
and connections that support critical national infrastructure providers across health,
emergency services, defence, education, transport, banking and government.

During the last 12 months, TalkTalk reported revenues of c£1.2bn and was loss-making.
Over a period of time and through the integration into BT Group, the acquisition
will become value accretive as the business is stabilised and synergies are realised.

BT expects a regulatory review of the transaction to take place over the coming 
weeks, pending which TalkTalk and BT will operate separately and continue to compete.

> **Allison Kirkby, Chief Executive of BT Group, said:** _“This is a genuinely unprecedented
> situation, where millions of citizens and businesses were at risk if TalkTalk 
> had collapsed. BT is the digital backbone of the country, with a presence in every
> postcode. We have been connecting the nation for generations, stepping up in the
> moments that matter, and BT acquiring TalkTalk is now the only viable option to
> keep millions of customers connected and supported._
> _“Our immediate priority is to stabilise the business and provide a safety net
> for the households and businesses who rely on TalkTalk. Once the regulatory process
> has been concluded, TalkTalk’s customers will benefit from access to the UK’s 
> best network, and the full range of market-leading products and services that 
> BT offers. And, over a period of time, the transaction will create value for all
> our stakeholders – customers, colleagues, the country, and our owners.”_

BT has also confirmed that Clive Selley CBE, with immediate effect, will lead the
stabilisation and integration planning of the acquisition. Martijn Blanken will 
take over Clive’s role as CEO of BT International, in addition to being CEO-Designate
of BT’s proposed international joint venture with Verizon.

BT is today reconfirming all FY27 and multi-year financial outlook metrics, including
the inflection in Normalised Free Cash Flow to c£2.0bn in the current year, FY27,
and to c£3.0bn by the end of the decade excluding the effects of this transaction.

Specifically, for FY27 BT will report the acquired business as a separate reportable
segment. The estimate of the total cash impact of the acquisition in FY27 is c£400m,
comprising consideration, transaction and administration costs, working capital 
impacts as well as a trading loss for the balance of this fiscal year of c£60m and
non-receipt of c£100m otherwise due to Openreach.

BT will provide further details on the effects of the acquisition on revenue, EBITDA
and capex following alignment of TalkTalk’s financial reporting to BT’s accounting
policies and completion of acquisition accounting later this fiscal year.

BT remains committed to its credit rating target of BBB+/Baa1 and minimum rating
of BBB/Baa2, and to grow its dividend by low to mid single digit percent per annum
in FY27 and onwards until metrics consistent with a BBB+ credit rating are reached;
thereafter residual cash flow will be available for enhanced distributions to shareholders.

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