Enterprise IT and telephony provider Daisy Holdings is set to acquire local rival Alternative Networks in a £165.3 million deal.
The agreement sees the creation of an enlarged player to take on the established telcos in the growing enterprise communications market.
Daisy is offering 335p per share, which represents a 17 percent premium on Alternative’s closing share price on Friday.
Alternative provides a range of telephony and IT services to businesses such as Carillion, Conde Nast and public sector bodies including the London borough of Hounslow.
It reported revenues of £69.3 million in the six months to March, a year-on-year decline of four percent, while adjusted EBITDA was down 27 percent to £7.5 million.
Daisy delisted from the stock market in January 2015 but claims to be the UK’s largest independent provider of enterprise comms and IT.
It claims 60,000 direct customers, including half of the country’s high street retailers.
In July, Daisy signed a six-year deal with BT, worth £70 million, to access the operator’s Wholesale Hosted Centrex platform.
Neil Muller, Chief Executive Officer of Daisy, said: “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.”
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James Murray, Chairman of Alternative Networks, added: “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.”
Source: European Communications