TalkTalk Business and ARO to borg into UK tech services giant

TalkTalk Business and ARO, the UK technology services company formerly known as Arrow, have agreed to merge, forming a new entity that will be one of the largest communications and managed services providers in the country. The combined organization will generate an annual revenue of approximately £200 million ($270 million) and serve over 70,000 companies.

Analysts predict that fixed-line and mobile communications, along with connectivity, will contribute about £130 million ($176 million) to the combined revenue, while IT and cybersecurity services will generate the remaining portion.

The primary goal of the merger is to enable cross-selling opportunities for both businesses by leveraging their respective customer bases and product offerings. TalkTalk Business, which has a large client base of small businesses, will benefit from ARO's mobile and Microsoft offerings, as well as other IT and cybersecurity services. ARO, on the other hand, will provide cloud, cybersecurity, and datacenter services, with a focus on Microsoft Solutions.

The deal must still receive approval under the UK's National Security and Investment Act (NSIA) due to ARO's government client relationships. Upon completion, the merged entity will retain its current brand names and offices before proceeding with integration plans, which is expected to involve the elimination of duplicate products and roles.

Both ARO and TalkTalk Business see this merger as a crucial step towards becoming leading players in the managed services industry. The rapidly evolving market demands technology partners that can provide strategic expertise, operational excellence, and broad service capabilities at scale. As ARO chief Ciaran Rafferty and TalkTalk Business CEO Ruth Kennedy emphasize, their combined strengths will create a more robust partner, offering deeper expertise, greater capacity for innovation, and improved customer success.