News
Shopping spree continues as Daisy seeks to strengthen enterprise comms portfolio.
U.K. enterprise services provider Daisy Group has agreed to acquire rival Alternative Networks in a deal worth £165.3 million (€193.9 million).
Announced on Monday, the deal is the latest in a string of acquisitions by Daisy aimed at increasing scale and strengthening its portfolio of fixed, mobile, and managed IT services.
"Alternative Networks is one of the largest independent providers of IT managed services and business-to-business communications in the U.K. and represents a strong and complementary strategic fit with the Daisy Group’s existing business and operations," said Neil Muller, CEO of Daisy, in a statement.
Alternative Networks has had a tumultuous 2016. Its financials have been hit by reductions in mobile roaming rates, and uncertainty following the U.K. referendum on EU membership. It issued the latest of several profit warnings in late September.
Daisy’s £3.35 per share offer represents a 17% premium on Alternative Networks’ closing share price of £2.85 at the end of last week. By comparison, at the start of 2016, Alternative’s shares were changing hands for £4.85.
Daisy will fund the acquisition through a combination of new and existing debt.
The transaction is subject to customary closing conditions, including approval from Alternative Networks shareholders. The takeover is expected to become effective by the end of 2016.
"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," said James Murray, chairman of Alternative Networks.
"I am proud to have been part of this successful story since the company’s founding and I would like to thank all employees and staff for their tremendous contribution over the years," he added.
