It is understood that joint administrators Allan Graham and David Standish, of KPMG, were appointed sometime this week, at which time a sale of the business process outsourcing (BPO) arm was concluded.

In a statement to the stock exchange, O2O said it had acquired the trade and assets of the BPO division of TPF and DSR from the joint administrators for a total consideration of £700,000, to be met from its existing cash resources.

These assets include "two leasehold properties, certain employees of the BPO business and a wide range of customer relationships and contracts recently generating £20m per year of turnover".

According to O2O, it plans to amalgamate these business and assets with its own BPO activity, which was formed through its acquisition of AccessPlus in 2008.

Simon Moate, chief executive of O2O, said: "This acquisition is an important development, broadening our customer base and increasing our market coverage in the sector."

It is unclear at this time what will happen to the manufacturing arm of TPF or what has happened to Thames Valley Capital (TVC), which was reported to have acquired a 51% stake in TPF Group in January.

Prior to its administration, TPF Group had revealed net current liabilities of £10.2m in its latest accounts and had been facing a multi-million pound winding-up petition from HMRC.

More to follow...