Daisy completes hat-trick of deals
TELECOMS company Daisy Group has continued its assault on the market with its third acquisition in less than two months, this time buying Redstone’s telecommunications division for £17m.
Daisy will acquire the assets of Redstone Telecom, a London-based telecoms provider of fixed line and mobile telephony services, distribution services and hardware sale and maintenance, in an all cash deal that is expected to complete on August 28.
As part of the transaction, which includes Redstone subsidiary Symphony Holdings, an agreement has been reached for the supply of fixed line and mobile services to the group.
In the year ending March 31, 2009, it generated unaudited Revenue of £74.7m and EBITDA of £4.6m, not including Redstone’s central costs.
This is the third acquisition Nelson-based Daisy has made since it formed in early July.
Daisy, which listed last month via a £200m reverse takeover deal with Freedom4, bought AT Communications out of administration for £7m in cash plus share warrants and Halifax-based Eurotel for £13.5m in cash plus shares, earlier this month.
Peter Dubens, chairman for Daisy, said: “The acquisition of Redstone is another step in pursuing our stated strategy of becoming one of the largest UK providers to the SME and mid-market of telecommunications services and solutions. Following our acquisitions of AT Communications and Eurotel, Daisy is now beginning to build some important scale.”
Matthew Riley, chief executive of Daisy, said:”Daisy’s acquisition of Redstone’s telecoms division further strengthens our position in the reseller market. This transaction is another step towards the group consolidating this fragmented sector and we will continue to pursue this strategy, building on our proposition of providing a truly converged product set to the SME and mid-market business customer.”
Law firm Eversheds advised Daisy on the deal, led by Keith Froud, head of corporate in the North, and David McGlennon.
Mr Froud said: “Daisy is so well placed to take advantage of opportunities in the market and it’s great to be continuing our longstanding relationship by helping with these important acquisitions”.
