Daisy completes Phoenix IT gobble
Outfit marches on with £1bn revenue mid-market domination plan
Acquisition-ravenous Daisy Group has completed its gobble of tech services outfit Phoenix IT Group.
The deal is a sizeable purchase for Daisy, with Phoenix turning over £233.4m in sales for the full-year 2014. The 1,400 engineers working for Daisy and Phoenix will be merged in the Partner Services division.
The Phoenix swallow will boost Daisy's sales significantly. For the full-year 2014 Daisy posted a 0.3 per cent increase in sales of £353m and leaked £16m in losses, due to various acquisition costs.
Daisy has grand plans to become a £1bn revenue operation and looks to be edging ever closer to that goal, with post-acquisition sales now on track to reach £600m.
Philip Carse, analyst at Megabuyte, said Daisy is unlikely to halt its acquisition trail any time soon. However, he added the outfit is likely to have its eye on smaller targets while still digesting Phoenix.
He said: "This is a huge deal for Daisy and significant in expanding its mid market base, with the merger between a conventional telecoms business and an IT business."
Matthew Riley, Daisy Group founder, said: “[Our] ambition is to be the leading provider of unified business communications and IT infrastructure managed services and solutions via our SMB, Corporate and Partner Services businesses in the UK – a marketplace we believe to be worth over £10bn per annum."
“For the last decade we have been consolidating the fragmented market and the acquisition of Phoenix is evidence of Daisy’s intent to provide its customers and partners with a truly holistic, market leading service.” ®