Daisy has acquired data networks provider Managed Communications for an estimated £6.3 million.
The initial consideration of £6.3 million is subject to change after Daisy receives Managed Communications’ EBIT and cash position. Daisy will pay £4.65 million on completion of the deal with a further amount estimated at £1.66 million to be paid after six months.
It will also pay an additional amount in 2011, dependent on earnings before interest and tax between
August 1 2010 to July 31 2011.
Nottingham-based Managed Communications provides data networks through bonded ADSL and SDSL lines to around 800 SME customers. It also offers search engine optimisation tools, internet access, managed security, email and managed bandwidth solutions.
Bonded DSL is a low cost alternative to leased lines allowing voice and data traffic to run over an existing copper telephone line at speeds of up to 400 Mbps.
In the year ended December 31 2009, Managed Communications reported revenue of £3.8 million and
EBITDA of £1.6 million and is expected to have £1.1 million of cash on completion of the deal.
In July last year, Daisy purchased AT Communications and Eurotel for a combined £20 million, followed by the purchase of Redstone’s fixed and mobile units in September for £17 million.
Daisy chief executive Matthew Riley (pictured) said: “Strategically this is the right acquisition for us as we move forward into a data rich and more converged world. The combination of Managed Communications and its product offering, with Daisy’s sales force and SME customer base, creates cross-selling potential and the opportunity for margin improvement.
“Through this acquisition, we have strengthened our data offering, increased our range of
services and will be able to provide our SME customers with more of what they want.”