Daisy's £175m acquisition of TalkTalk's direct B2B business has been scrapped, with TalkTalk claiming the decision was "jointly agreed".
TalkTalk announced the potential deal in May, at the same time as it posted a revenue decline amid a restructure of the business.
The acquisition was expected to close at the end of this month, but has now been called off.
In a statement TalkTalk said: "TalkTalk and The Daisy Group have jointly agreed not to proceed with the proposed sale of TalkTalk's direct B2B business, as announced on 24 May 2018.
"Daisy remains an important, long-term strategic partner for TalkTalk."
CRN has contacted Daisy for comment.
The scrapping of the deal comes during a time of transition at Daisy, with CEO Neil Muller resigning and founder Matt Riley coming back into the fold as executive chairman.
Riley and fellow shareholders had reportedly been looking to sell the business, but Riley is now said to be considering a move to take full control of the firm.
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