Daisy Group purchase Phoenix IT Group for £135m: Daisy Group are continuing their corporate acquisition strategy, with the purchase of Phoenix IT Group for £135m.
Founder and executive chairman of Daisy, Matthew Riley, commented on the deal, saying: “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 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. We look forward to combining with Phoenix and continuing to provide essential services to our customers to allow them to run and grow their businesses.”
Phoenix IT had been a rival business communications company to Daisy. It will have its shares valued at 160p, which marks a premium of 24% on last Wednesday’s share price.
Chief executive officer of Phoenix, Steve Vaughan, added: “Our three-phase plan for Phoenix has the potential to deliver long-term value to shareholders, but as with any plan it is not without risk.
“The Phoenix Board believes that the premium implied by this offer, in cash, is a fair recognition of the potential upside in the plan, tempered by the inevitable execution uncertainty.
“We have worked hard to bring financial stability and strategic clarity to our group. Today’s offer serves as clear recognition of those efforts and their success.”
Partners Richard Harding and Gary Davison from the north-west division of EY supported Daisy Group through the purchase.
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