Daisy swoops for UK telecoms rival in £165.3m deal
LANCASHIRE-based telecoms specialist Daisy Group has swooped for Alternative Networks in a £165.3m deal.
Directors at Nelson-headquartered Daisy and Alternative Networks say they believe Alternative Networks represents a strong, complementary fit with the Daisy Group’s existing business and operations.
The acquisition will build upon Daisy’s recent acquisitions of Damovo and Phoenix IT in the managed services segment and will further broaden and strengthen its mobile and fixed line product and service offerings.
Daisy chief executive Neil Muller said: “This announcement builds upon Daisy’s successful acquisition strategy, to enable our customers to take advantage of digital technology in a converging world of business communications and IT.
“Alternative Networks is one of the largest independent providers of IT managed services and business-to-business communications in the UK and represents a strong and complementary strategic fit with the Daisy Group’s existing business and operations.
“Having respected Alternative Networks for many years, we look forward to further enhancing our capability and scale across our chosen markets and we believe the combined group will be well positioned to increase its market share further and to continue to be the provider of choice for its customers and partners.”
James Murray, chairman of London-based Alternative Networks, said: “Alternative Networks has developed into a leading independent provider of end-to-end communication solutions and managed IT services to businesses in the UK.
“Through its impressive track record of growth, Alternative Networks has also delivered significant value accretion for the Alternative Networks Shareholders. I am proud to have been part of this successful story since the Company’s founding and I would like to thank all employees and staff for their tremendous contribution over the years.
“Today, Alternative Networks faces rising demand from customers to procure, manage and support the complete chain of enterprise IT and communication solutions. The combination with Daisy will ensure that the company is best placed to capitalise on future growth opportunities and remain the provider of choice for our customers.
“In particular, the strong complementarity and strategic fit between Daisy and Alternative Networks will ensure our competitiveness and benefit our customers through access to a broader range of unified communications solutions.
“In addition, the deal will “further increase the Daisy Group’s scale, providing efficiencies for the combined businesses as well as improved cross-selling opportunities”.
Alternative Networks directors were advised by Rothschild and Investec.
Eversheds advised Daisy on the deal. The Eversheds team, led by partner Stephen Nash, (corporate), comprised: Keith Froud (head of corporate and Daisy client partner), legal directors Mark Roe and Wyn Jones, associate Phillip Becker (all corporate), partner Danny Blum and senior associate Richard Sharman (both share incentives).
A team at Deloitte in the North West provided due diligence on the transaction, led by Jodi Birkett, with support from Ian Pickup and Dan Gourlay.
