Daisy Group has acquired the Vodafone mobile service business of Outsourcery, a managed service provider, for a cash consideration of £12m.
Outsourcery provides a suite of unified communications, focused on mobile voice, mobile data and hosted solutions to small and medium-sized enterprises.
Daisy Group has acquired 100% of the issued share capital of Hamsard 3155 Limited, the ultimate holding company of Outsourcery.
Immediately after completion of the acquisition Daisy disposed of Outsourcery’s hosting and remaining mobile service assets to Outsourcery Hosting Limited for a nominal consideration.
In the 12 month period ending December 2010, the unaudited management accounts of Outsourcery included revenues and EBITDA of £42.7m and £1.2m respectively, with revenue and EBITDA of £23.2m and £2.6m relating to the assets being retained.
The transaction is expected to be ‘earnings enhancing’ for the financial year ending March 2012.
Daisy CEO Matthew Riley said: ‘Outsourcery represents a strong strategic fit for the Group, bolstering our mobile division through its enhanced skill set and experience. This acquisition makes Daisy Vodafone’s largest mobile managed service provider in the UK.
‘Whilst enhancing the relationship that the Group has with Vodafone and significantly increasing the proportion of group revenues which are derived from mobile, this acquisition will also drive further cross-selling opportunities and provide the acquired customers with access to the Group’s full portfolio of unified communications products. The transaction also helps position us for the increase in smartphone adoption and the uptake in mobile data, which we are seeing in the industry.
‘The acquisition has been funded through the Group’s banking facility, the recent extension
of which illustrates the support the Group has behind its strategy. This acquisition is yet another step towards achieving the Group’s stated goal of consolidating the fragmented reseller marketplace.’