BT buys TalkTalk and wholesale arm PXC out of administration
TalkTalk’s consumer and wholesale businesses pass to BT after a long sale process failed. For firms that buy connectivity through PXC-based resellers, the question is what happens to supply, prices and contracts
- Retail customers: 1.5 million, according to BT
- Wholesale customers: 1 million, according to BT
- Expected TalkTalk trading loss for the rest of FY27: about £60m (BT estimate)
- Money otherwise due to Openreach that BT will not receive: about £100m (BT estimate)
- Clive Selley, chief executive of BT International, moves to lead stabilization and integration planning with immediate effect, BT says
Nothing forces a move yet, and day-to-day supply through resellers should look the same for now. The real decision comes when integration begins. Organizations buying broadband, Ethernet or leased lines through a PXC-based provider should check change-of-control and termination clauses now and ask which network and price list they will sit on afterward. Anyone with a renewal due in the meantime may find rival wholesalers keen to win that business.
“Our immediate priority is to stabilise the business and provide a safety net for the households and businesses who rely on TalkTalk.”Allison Kirkby, chief executive, BT Group
BT Group said on 5 October that it had acquired TalkTalk Telecommunications Limited and PlatformX Communications Limited, the wholesale business known as PXC, out of the administration of TalkTalk Group. BT estimates the total cash impact in its current financial year, FY27, at about £400m.
BT said it bought the two companies on a debt-free basis after a long sale process for TalkTalk’s consumer and wholesale operations ended without success. TalkTalk reported revenue of about £1.2bn over the past 12 months and was loss-making, according to BT.
PXC sells connectivity, voice, cloud and managed security services through resellers, carriers, aggregators, systems integrators, service providers and alternative networks, according to its website, so its services reach many end customers under other providers’ brands.
BT says the £400m covers the purchase price, transaction and administration costs and working capital as well as trading losses and lost Openreach income. It has kept its FY27 and multi-year outlook, including normalized free cash flow of about £2bn this year and £3bn by the end of the decade, both excluding the deal.
BT expects a regulatory review of the deal over the coming weeks and said that, until it ends, TalkTalk and BT will run separately and keep competing.
Sources
- BT Group, “BT Group has acquired TalkTalk and PlatformX ensuring continuity of service for millions of customers”, press release, 5 October 2026. https://newsroom.bt.com/bt-group-has-acquired-talktalk-and-platformx-ensuring-continuity-of-service-for-millions-of-customers/
- BT Group, “BT Group has acquired TalkTalk and PlatformX”, RNS announcement, 5 October 2026. https://www.investegate.co.uk/announcement/rns/bt-group--bt.a/bt-group-has-acquired-talktalk-and-platformx/9806102
- PXC, company website, accessed 5 October 2026. https://www.pxc.co.uk/
