Daisy snaps up listed Phoenix in £135m deal

Matthew Riley

TELECOMS specialist Daisy Group has agreed a deal to buy listed rival Phoenix IT Group in a deal worth about £135m.

Daisy, based in Nelson, Lancashire, and its hedge fund backer Toscafund have been in discussions with Listed East Midlands company Phoenix for several days.
Phoenix shares have been valued at 160p, a 24% premium on the closing price of 129p on May 20.

Founder and chief executive of Daisy Matthew Riley said: “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.”

Phoenix chief executive Steve Vaughan said: “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 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.”

EY in the North West partners Gary Davison and Richard Harding provided corporate finance and due diligence services to Daisy.

Click here to sign up to receive our new South West business news...
Close