TalkTalk, a UK ISP, sold 120,000 of its subscribers to Rise Fibre, which is financed by CVC. The acquisition increased Rise Fibre’s client base to 250,000, however the terms of the deal were not disclosed.
Since its start last year, the company has expanded its clientele by utilising a number of networks run by companies such as BT, CityFibre, Community Fibre, Trooli, Freedom Fibre, and 4th Utility.
According to Steve Wilson, CEO of Rise Fibre, “reaching nearly a quarter of a million customers so quickly is a fantastic milestone and shows that people are ready for a different kind of broadband provider.”
“We will be able to reach even more people in the UK with the Rise Fibre experience thanks to the acquisition of TalkTalk customers.” However, this is just the beginning. We’ll put the client experience at the center of all we do as we expand.
Wilson stated that CVC DIF is expected to provide more funding for Rise Fibre, which aims to reach one million users.
What about TalkTalk, tho?
The acquisition creates more concerns about TalkTalk’s future, even tho Rise Fibre has high goals for expanding its clientele.
After BT Group, Sky, Virgin Media O2, and Vodafone, TalkTalk is now the fifth-largest broadband provider in the UK. However, it has had difficulties lately.
The ISP’s client base has decreased from 2.5 million in 2023 to 1.75 million, and it has cut 20% of its total workforce, including 130 positions at its Salford consumer division in December.
In an attempt to expand its home broadband coverage, VodafoneThree reportedly made an offer to purchase TalkTalk’s consumer division in June. However, this offer has since been withdrawn.
Sir Charles Dunstone, the company’s founder, consented to a £120 million ($165.7 million) capital infusion from an existing stakeholder last year.
The company’s former second-largest stakeholder, Toscafund Asset Management, successfully acquired TalkTalk in 2021 for £1.1 billion ($1.49 billion).
Two years later, the company divided its operations into three divisions: B2B Wholesale Platform, TalkTalk Consumer, and TalkTalk Business Direct. The latter was later sold by TalkTalk to TFP Telecoms Limited (TFP), a special purpose company under the control of TalkTalk Telecom Group Limited (TTG)’s principal shareholders.
Roughly 120,000 broadband users were transferred from TalkTalk to Rise Fibre.
Consequently, the newly established operator currently offers broadband via networks such as BT, CityFibre, Community Fibre, Trooli, Freedom Fibre, and 4th Utility.
According to the company, TalkTalk customers switching to Rise Fibre don’t need to do anything because broadband services will carry on as usual while both businesses collaborate to guarantee a seamless transition.
The announcement comes after Rise Fibre experienced tremendous growth, creating more than 120 employment in the UK.
“Reaching nearly a quarter of a million customers so quickly is a fantastic milestone and shows that people are ready for a different kind of broadband provider,” stated Steve Wilson, CEO of Rise Fibre.
“Consumers want easier-to-work-with companies, simpler products, and better service.” We developed Rise Fibre for precisely this reason.
“We will be able to reach even more people in the UK with the Rise Fibre experience thanks to the acquisition of TalkTalk customers.” However, this is just the beginning. We’ll put the client experience at the center of all we do as we expand.