TalkTalk has entered into agreement to buy SSE Phone & Broadband from OVO Energy.

The Salford-based internet giant has been the subject of increased speculation itself of a potential takeover deal from Virgin Media 02 that would value it at £3bn.

As part of the deal with OVO Energy, all of the SSE Phone and Broadband customers and team will transfer over to TalkTalk from the Autumn.

In 2020, SSE Phone & Broadband, was acquired by OVO Energy as part of its purchase of SSE Energy Services from SSE plc.

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A TalkTalk spokesperson said: “We are delighted to be welcoming SSE Phone & Broadband customers and team to TalkTalk this Autumn. As the country’s only scale affordable provider, we look forward to providing our high-quality service at the best possible value.”

The sale will enable Ovo to focus on its core utilities business, particularly the decarbonisation of the home and its ambitions through Plan Zero to become a net zero business.

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Employees have been informed of the changes and consultations will continue.