CEO Matthew Riley says deal will help create the first “truly converged” IT and communications provider in the UK mid-market
Daisy has agreed a £135 million takeover of managed services and cloud provider, Phoenix IT.
The deal represents a premium of 24 per cent on Phoenix share price the day before an initial offer was announced on 21 May and a 37 per cent premium on its average share price over the past year.
The deal has been mooted ever since Daisy chief executive officer, Matthew Riley, took the telecoms provider private last year in a £500 million deal. Venture capitalists, Toscafund, which provided capital for both deals, was a major shareholder in Phoenix IT.
Riley says that the deal creates a unique opportunity for Daisy to become the first “truly converged” IT and communications provider in the UK mid-market.
“This announcement builds upon the corporate acquisition strategy that Daisy has successfully
executed, and continues to follow, in order to offer a diverse product portfolio as a leading UK supplier of unified business communications solutions to SMEs and mid-market businesses,” he said in a statement.
“The addition of Phoenix’s strengths in IT services and solutions, particularly its managed services and rapidly expanding cloud services, will further strengthen Daisy’s existing portfolio of products and services that represent the converging world of traditional telecoms and IT.”
Analysts Megabuyte claim that the combined £620 million revenues of the two companies would make Daisy ahead of TalkTalk Business and Virgin Media Business.
Daisy made an £8 million loss in the six ending September 30 2014 on revenues of £169.6 million.