BT to buy broadband supplier TalkTalk in £400m rescue deal, saving 900 jobs

TalkTalk reported revenues of about £1.2bn over the past 12 months and is loss-making. Photograph: Neil Hall/Reuters

BT has agreed to buy the broadband supplier TalkTalk out of administration in a £400m rescue deal that will save 900 jobs.

The company said it had struck a deal to acquire TalkTalk and its wholesale business PlatformX Communications (PXC) on a debt-free basis, in a move that is expected to cost it £400m.