The merger of Nelson-based telecoms group Daisy and West Midlands business Wavenet has resulted in the creation of the UK’s biggest independent IT managed services provider. Now boasting a £500m turnover and employing around 2,000 staff, the newly combined business is set to offer cyber, cloud and intelligent network solutions to over 22,000 customers. With the backing of Macquarie Capital Principal Finance, the merged entity is poised for long-term growth, aiming to capitalise on the expanding markets of cyber, cloud and intelligent networks.
- Daisy and Wavenet have merged to form the UK’s largest independent IT managed services provider.
- The merger will create a £500m-turnover group with around 2,000 staff and over 22,000 customers.
- The deal will see Wavenet’s existing private equity partner become the largest shareholder, with Matthew Riley retaining a minority stake in the business.
Telecom Titans Merge to Forge a New Force in IT Managed Services
In an exciting development within the UK’s tech industry, Nelson-based telecoms group Daisy is gearing up to join forces with West Midlands business Wavenet. The merger is set to form a £500m-turnover group, an employment powerhouse for around 2,000 staff and a support system for more than 22,000 customers.
Shareholder Shifts and Board Changes
As part of the deal, Wavenet’s present private equity partner, Macquarie Capital Principal Finance, will emerge as the largest shareholder. Daisy Group chairman, Matthew Riley, along with other current Daisy shareholders, will retain a minority stake in the business. Additionally, Riley will assume a fresh role as a non-executive director on the board of the newly enlarged business.
A Powerful Union for Unprecedented Growth
The merger of these two businesses aims to establish the UK’s most significant independent IT managed services provider, with a keen focus on delivering cyber, cloud and intelligent network solutions to UK businesses and the public sector. Both Wavenet and Daisy have recently demonstrated significant expansion through organic growth and strategic acquisitions.
Acquisition Success Stories
In June 2023, Daisy enhanced its cyber and security capability through the acquisition of ECSC. Wavenet, on the other hand, has executed six successful acquisitions since 2021, resulting in a steep growth trajectory and a substantial increase in its IT services, cyber and next generation communications capability.
Leaders Express Enthusiasm
Wavenet chairman, Bill Dawson, expressed his excitement about the merger:
“We are thrilled to be joining forces with Daisy. By combining our strengths, resources and expertise, we are poised to create a stronger and more innovative organisation, well positioned to maximise on the rising tide markets of cyber, cloud and intelligent networks.”
Matthew Riley, Daisy Group chairman, echoed this sentiment, emphasising the cultural fit and shared vision of the two companies.
Final Thoughts
This merger represents a significant leap forward in the UK’s IT managed services sector. With the combined expertise, resources and shared vision of Daisy and Wavenet, the new entity is poised to shape the future of next-generation technology. As we anticipate the regulatory approval of this deal, we can’t help but admire the strategic growth both companies have demonstrated through their past acquisitions. This merger is a testament to their dedication to innovation, growth and service excellence, and we look forward to seeing what this formidable new entity will achieve in the future.
FAQ
Q: What is the significance of the merger between Daisy and Wavenet?
A: The merger between Daisy and Wavenet creates the UK’s biggest independent IT managed services provider, focusing on delivering cyber, cloud and intelligent network solutions to UK businesses and the public sector.
Q: Who will become the largest shareholder after the merger?
A: Solihull-based Wavenet’s existing private equity partner, Macquarie Capital Principal Finance, will become the largest shareholder, with Daisy Group chairman, Matthew Riley, and other existing Daisy shareholders retaining a minority stake in the business.
Q: What are the key areas of focus for the newly combined business?
A: The newly combined business will focus on delivering cyber, cloud and intelligent network solutions to UK businesses and the public sector, leveraging the strengths, resources and expertise of both Daisy and Wavenet.
Q: How will the merger benefit the customers of Daisy and Wavenet?
A: The merger will result in an increased scale of offering, greater market reach, and cross-selling opportunities for customers, allowing them to access a broader range of IT managed services and solutions.
Q: What are the future aspirations of the merged Daisy and Wavenet business?
A: The shared vision of both companies is to create a best-in-class business that will help shape the future of next-generation technology, leveraging their combined breadth of skill and depth of expertise in the marketplace.
