Daisy Group snaps up Redditch-based Indecs in £18m deal
BUSINESS telecoms and IT provider Daisy Group has returned to the acquisitions trail with an £18m cash deal for a Worcestershire-based cloud computing and server specialist.
The Lancashire-based, AIM-listed group, says Indecs is a leading provider of technical maintenance and support services for business critical, IT server and cloud storage facilities.
The Redditch business specialises in tailoring maintenance contracts to individual customers’ needs and supporting legacy hardware systems. Its customers range from blue chip household names and public authorities to SMEs across the UK.
Indecs also provides expert support across a wide range of leading manufacturer brands generating maintenance revenues in addition to revenues from hardware sales, consultancy services and time and materials services.
In the 12 months to June 30 2013, the combined unaudited management accounts of Indecs included revenues and EBITDA of £10.6m and £2.6m, respectively. Approximately 80% of the revenues related to recurring maintenance revenues with strong free cash generation.
Indecs is expected to have in excess of £1m of net cash at completion and the balance of consideration will be funded from the group’s existing borrowing facilities.
Daisy chief executive Matthew Riley said: “Indecs represents a strong strategic fit and clear growth opportunity. Its multi-vendor specialist maintenance and support services further expand Daisy’s IT services offering and give the group the ability to support businesses on legacy IT systems as well as those investing in cloud solutions and cloud based data storage.
“I believe this exciting expansion of our service offering, together with the cross selling opportunities for both Indecs and our existing customer base, enhance the group’s ability to deliver sustained growth.”
Springboard Corporate Finance, led by Justin Sparks, was lead advisor and law firm Harrison Clark Rickerbys, led by Rod Thomas, advised Indecs on the sale of the business to Daisy.
