Communications services provider swoops for listed cybersecurity firm
An agreement has been reached for Lancashire-headquartered communications services provider, Daisy, to acquire Bradford-based cybersecurity business, ECSC.
The deal values the entire issued and to be issued ordinary share capital of ECSC at about £5.4m.
Daisy’s directors say they believe ECSC represents an opportunity to acquire a cyber focused company which is a strong fit with the existing business and operations of the Cyber & Operational Resilience Division of Daisy Corporate Services. (DCS)
They note ECSC provides highly complementary services – within high growth markets – to DCS’s current Operational Resilience offerings. In addition, the acquisition will provide significant opportunities for cross-selling into Daisy’s wider Managed Service customer base.
Matthew Briggs, chief executive officer of ECSC, said: “As a board, having carefully considered the pros and cons of being acquired by Daisy, we determined the pros significantly outweigh the cons.
“Whilst the strategy for ECSC is underway, there are some inevitable headwinds from increased competition, pricing pressures and wage inflation especially in the technology sector.
“Taking these factors into account, together with a strategy which can only be executed over a 12-24 month period due to the nature of ‘big ticket’ contract negotiations, the opportunity to be acquired by Daisy at a significant share price premium and a ‘ready made’ cross sell client base makes this acquisition very attractive.
“We are excited by the prospect of what can be achieved as Daisy and ECSC come together.
“Under Daisy ownership the ECSC directors believe there is a very real prospect ECSC can become the UK’s leading cyber security organisation, providing excellent career opportunities and delivering best in class cyber solutions for new and existing clients.”
Established in 2000 by Ian Mann, ECSC provides expert security breach prevention, detection and response support to organisations across all sectors. It operates from two Security Operations Centres (SOCs), one in Yorkshire, and the other in Brisbane, Australia.
Its client base ranges from e-commerce start-ups to global blue-chip organisations. In the year to 31 December 2021, the business generated revenue of £6.1m and an adjusted EBITDA of £0.2m.
Neil Thompson, chief executive officer of Daisy, added: “We’re really excited about adding ECSC’s longstanding and highly complementary Cyber expertise to Daisy’s existing Operational Resilience Division, and wider Managed Service business.
“Our people are looking forward to working together, and the skill sets the ECSC team bring will further enhance the market leading IT services we provide to our customers.”
Daisy Group is an independent UK provider of end-to-end business technology and communications services to small-to-medium, mid-market and large enterprises.
Over the last two decades, it has grown to be one of the largest providers of communications and IT solutions across the UK.