Daisy Group has announced a £135m cash deal to acquire Phoenix IT Group.
Speaking about the acquisition, Matthew Riley, founder and executive chairman of Daisy, explained that Phoenix’s IT and cloud services fuelled the deal. He said: ‘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.We believe that the acquisition of Phoenix creates the unique opportunity to become the first truly converged IT and unified 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.’
The announcement followed a statement released by Phoenix last week in which advanced discussions with Daisy and Toscafund Asset Management were confirmed. Toscafund, who were part of the consortium that took Daisy private in 2014, have a holding in Phoenix and are Daisy’s largest shareholders.
The acquisition will see Daisy become one of the largest telecom business firms, rivalling Virgin Media and TalkTalk’s unified comms businesses.