Company acquires trading assets of Telinet and some of Ipitomi, claiming purchase will strengthen its presence within the corporate mid-market
Unified communications provider Daisy Group has acquired the trading assets of Telinet and certain trading assets of Ipitomi for a total sum of £15.4 million. The data solutions and managed services businesses are both wholly owned subsidiaries of Niu Solutions.
Both companies supply data solutions, telephone systems, unified communications, connectivity, Microsoft presence and collaboration to mid-market customers.
Daisy Group said the acquisition further bolsters its existing presence in the mid-market space and enhances its data and engineering capabilities, with Avaya and Mitel trained engineers joining the Group’s UK wide engineering team.
In the eight month period ending August 31, 2010, the unaudited management accounts of Niu Solutions Holding included revenues and gross profits of £15.8 million and £4.6 million in relation to the Telinet and Ipitomi assets being acquired.
An initial payment of £12.4 million will be made by Daisy Group with £3 million deferred for up to two years. Daisy Group said the transaction is expected to be earnings enhancing for the financial year ending March 2012.
Daisy Group chief executive Matthew Riley said: “The acquisition further bolsters Daisy’s group-wide capabilities, strengthening our sales team and engineering force, while significantly enhancing both our data and managed services portfolio and customer base.
“Furthermore, we also see a great opportunity to cross sell Daisy Group’s mobile product set into this new base and provide these customers with a full, unified communications offering. In turn customers benefit hugely from being able to reduce their supply chains.
“This is further evidence of Daisy Group’s ambition to consolidate the fragmented reseller market and I believe we now have a strong presence in the corporate mid-market space.”