Agreement ends negotiations which had dragged on for three months and sees Daisy return to private ownership
A consortium led by Daisy Group chief executive officer Matthew Riley has agreed to purchase the telecommunications firm for almost £494 million.
The buyout will see Daisy return to private ownership for the first time since 2009 under the guidance of Riley,Toscafund Asset Mangement, its two largest shareholders and minor shareholder Penta Capital. Riley already held 23 per cent of the firm prior to the buyout with Toscafund holding 28 per cent of the firm, which is listed on the AIM.
The agreement marks the end of protracted negotiations which have been going on since July 27. The consortium received two extensions to its deadline for making a final offer for the outstanding shares in the company
In its most recent financial results for the 12 months ending March 31, 2014, the company reported a £1.2 million yearly increase in revenue to £352.7 million, while gross profit rose by £9.6 million to £129.7 million.
“The company has enjoyed loyal support from its shareholders over the five years it has been quoted on AIM,” Riley said in a statement.
“The offer provides Daisy Shareholders with a cash premium today and represents a positive development for our 59,000 customers and continuity for our 1,500 employees; it also positions the Company for its next phase of growth in the UK telecoms and IT sector, with the backing and strategic and financial guidance of Toscafund and Penta.”