TalkTalk Business and technology services company ARO plan to merge, aiming to create one of the UK’s largest communications and managed services providers. The proposed business would combine connectivity with cloud, cybersecurity and IT services, reflecting growing demand from British firms for single suppliers supporting digital transformation.

The combined group is expected to generate about £200 million in annual revenue and serve more than 70,000 companies, most of them TalkTalk Business small-business customers. Megabuyte expects around £130 million of revenue to come from fixed-line, mobile and connectivity services, with IT and cybersecurity making up the rest; the transaction requires National Security and Investment Act approval and is expected to complete by the end of summer. Both brands and offices will initially remain, while the eventual name, leadership and any later consolidation have not been disclosed.