Data service provider MurphX Innovative Solutions latest in run of acquisitions by Daisy Communications
Daisy Group has picked off another SME reseller in the form of data connectivity and hosted solutions provider MurphX Innovative Solutions for £4.8 million.
Hampshire-based MurphX provides business broadband, virtual private networks, leased line and ethernet connectivity, co-location, IP transit and application services, including SaaS. Its products are aimed at internet service providers (ISPs), telecoms resellers and IT services organisations, who resell to SME and mid-market business customers.
Daisy chief executive Matthew Riley said: “MurphX is a dynamic, fast-growing data company which we see as a great fit for the Group, enhancing our existing data portfolio and expanding our unified communications offering to the SME and mid-market.
“This is a highly complementary business that strengthens our position in the data sales arena and is another step towards consolidating this fragmented market place.”
MurphX’s accounts for the five months ending April 30, 2010, show revenues, gross profit and EBITDA of £4.8 million, £1.3 million and £0.5 million respectively.
MurphX has partnerships with BT, C&W, Opal Telecom and Virgin Media and has 45,000 business broadband connections.
Daisy has purchased its entire share capital for £4.8 million in case. Further consideration will become payable based on growth in EBITDA over a three-year period.
Following completion, the MurphX management team will lead the integration of the business, with the aim of driving turnover and profit growth in the combined entity.
The deal for MurphX follows its purchase of airtime distribitor Fone Logistics earlier this month for £3.6 million, which in turn followed the purchases of resellers BNS Telecom for £10.45 million and Managed Communications for £6.3 million in February.
In August last year, Daisy bought Redstone Telecom, including its Redstone mobile airtime distribution business, for £17 million, and also IT supplier Eurotel and communications provider AT Communications.
The Resdtone airtime unit has seen reverted to its old Anglia Telecom brand, and will absorbe the new Fone Logistics purchase.
Lancashire-based Daisy’s aggressive consolidation of the IT and mobile reseller markets has come sinceits sale to AIM-listed broadband provider Freedom4 Group in a £206 million reverse takeover in July last year.
Freedom4 Group purchased Daisy Communications for £81 million. At the same time, it acquired voice and data reseller Vialtus for £42 million and raised a further £83 million by way of a share placing.
The new group company was renamed Daisy, and Riley has used it to simplify the reseller landscape with a series of strategic purchases of rival firms and complementary service providers.