After months of rumours, Carphone Warehouse's TalkTalk has announced it is to buy troubled Tiscali UK in a £236 million cash deal.

The company says this will create Britain's largest consumer broadband provider with over 4.25 million customers covering over 25% of all UK households.

"Six years ago, no one could have imagined that we would build the largest residential broadband provider in the UK, but our determination to offer incredible value with the latest technology has propelled us to being the most popular provider in the country", says Carphone boss Charles Dunstone.

"Combining Tiscali with TalkTalk creates a unique platform that will allow us to innovate faster and provide an even better service for our enlarged customer base".

Tiscali customers will continue to receive the home phone and broadband services they have now, including email addresses - there's more info for those concerned at