Daisy buys Worldwide Group for £28m
DAISY Group has has agreed to buy audio conferencing company Worldwide Group Holdings for an initial £28m in cash, with further money payable based on future earnings.
Worldwide is based in Peterborough and was founded by group chairman Paul Bailey, who was shortlisted for an Entrepreneur of the Year award in 2010.
The company supplies audio-conferencing and call handling technology to business customers and carries UK call traffic from overseas territories. In the 12 months to December 31 2011, it achieved EBITDA of £4m on sales of £36.4m.
Nelson-based Daisy Group has said Worldwide complements its existing portfolio. Chief executive Matthew Riley said: “Worldwide represents a strong strategic fit and clear growth opportunity.
“Its audio-conferencing solution creates a new revenue stream for Daisy, whilst driving further cross-selling opportunities into our existing customer base and providing Worldwide’s customers with access to the group’s full portfolio.
“With many organisations now looking to reduce costs associated with business travel, we believe the audio-conferencing industry is an area capable of delivering sustained growth.”
Daisy said that it will pay for the acquisition by increasing its borrowing facilities and by adding Royal Bank of Scotland to its existing syndicate of four lenders.
The company also issued a trading update this morning which stated that profits and earnings are likely to be “within the range” of analysts’ expectations, with revenues significantly ahead following a series of acquisitions.
The company said that it was “pleased” with the process of integration that was taking place, with Spiritel, Outsourcery and Telinet/Ipitomi all successfully integrated during the year.
Net debt will be higher due to acquisitions and greater working capital requirements.
The company also said that chief operating officer Gareth Kirkwood has stepped down from the company to pursue other interests. Mr Riley will assume his role alongside that of chief executive.
The company was advised on the Worldwide acquisition by Ernst & Young and law firm Addleshaw Goddard.
Addleshaw Goddard corporate partner Roger Hart said: “Daisy has an ambitious growth strategy and this deal is a significant move to bring together two prominent UK telecoms providers to create an enhanced portfolio for the Daisy Group.”
Ernst & Young partner Richard Harding said: “Worldwide Group has a history of strong revenue growth in an attractive sector of the market.”
