Eversheds lawyers act for Daisy in £23.5m deal
YORKSHIRE advisers have acted on a deal which has seen fast-growing telecoms group Daisy spend £23.5m on an Essex-based company that provides telephone systems to doctors’ surgeries.
Daisy was advised by lawyers at the Leeds office of Eversheds. The team was led by corporate partners Keith Froud and John Sewell, together with corporate associate Sarah Turner.
Nelson-based Daisy said the business, NEG MBO Two, would give it significant cross-selling opportunities and offered the potential for strong organic growth.
NEG has around 2,000 customers and just over half are doctors who buy in NEG’s Surgery Line service.
In the 10 months to October 31 the company recorded earnings before interest, tax, depreciation and amortisation of £3.4m, up on a full-year figure of £2.9m in 2009. Revenues came in a £11.2m in the period and the company has gross assets of £7.4m.
Chief executive Matthew Riley, said: “The acquisition of NEG is a continuation of our stated consolidation drive in the fragmented reseller market. NEG has a proven track record for organic growth, further potential to grow, and provides the group with a strong footprint in a market in which we believe we can increase market share further.
“Through this acquisition, we have acquired a large market opportunity and the potential to drive new verticals for the group, giving us the ability to cross sell our data and mobile services and allowing us to provide a full unified business communications package to our enlarged customer base.”
Last month Daisy agreed a £27.3m deal to buy London-based SpiriTel, a reseller serving small and medium-sized enterprises.
