TalkTalk to acquire London-based network provider

TalkTalk's offices in Salford

TalkTalk has agreed to acquire Virtual1, a London-based provider of high-bandwidth network services.

The deal will provide Virtual1 the opportunity to ‘significantly increase’ its scale as a national provider of Ethernet solutions and will strengthen the capabilities and market position of both businesses.

Virtual1 CEO and founder Tom O’Hagan will continue to lead the standalone business, which employs 200 people, as part of the TalkTalk Group.

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

“As all businesses continue to experience increasing demands for high bandwidth services, we see huge benefits in acquiring Virtual1 coupling our national scale network with their market-leading APIs and software capabilities.

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

Tom O’Hagan, Virtual1 founder and CEO, said: “15 years ago I sold my house and left my job to start my own business. Even with my big ambitions I must admit back then I never imagined what Virtual1 would become.

“I’m immensely proud of what the business has achieved and that we have built one of the largest wholesale providers for connectivity 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 amazing customers we are privileged to serve.”

He added: “With our software smarts, and the scale of TalkTalk’s network, we are going to be an unstoppable force in the channel. This deal will change the market and I can’t wait to get stuck in helping our customers grow with game changing connectivity solutions on a network with 3,000 exchanges.”

The deal provides an exit for Virtual1’s investment partner BGF, which has backed the business since 2016.