Phoenix IT has revealed that it is in advanced discussions with Daisy Group over a possible cash buyout.
In a statement released to its shareholders, Phoenix explained that Daisy had ‘completed its due diligence and was well advanced with the finalisation of the necessary financing arrangements’, after approaching the Board of Phoenix for a potential takeover.
If the acquisition is completed, Daisy could become one of the largest telecom business firms, rivalling Virgin Media and TalkTalk’s unified comms business. Rumours of a potential takeover bid from Daisy have been circulating since last year when Toscafund Asset Management were part of the consortium that took Daisy private. Toscafund, who are Daisy’s largest shareholders, have a holding in Phoenix IT and were involved in Daisy’s recent takeover bid.
Speaking to Mobile last year, Philip Carse, analyst at Megabuyte, stated that plans to make Daisy a private company could be driven by future plans to merge with Phoenix IT. Carse said that former Daisy CEO Matthew Riley ‘had often spoken of his desire to create a substantial mid-market converged telecoms and IT player, and the acquisition of Phoenix would certainly accelerate that process.’
Daisy has until 5pm on June 18 2015 to formally announce an intention to acquire Phoenix.