Nelson-based telecoms group, Daisy, is to combine with West Midlands business Wavenet to form a £500m-turnover group employing around 2,000 staff, supporting in excess of 22,000 customers.
The deal will see Solihull-based Wavenet’s existing private equity partner, Macquarie Capital Principal Finance, become the largest shareholder with Daisy Group chairman, Matthew Riley, and other existing Daisy shareholders, retaining a minority stake in the business.
Matthew Riley will join the board of the enlarged business as a non-executive director.
This backing provides a strong balance sheet and investment to enable long term growth.
The transaction is subject to customary regulatory approvals.
Combining both businesses will create the UK’s largest independent IT managed services provider, focusing on delivering cyber, cloud and intelligent network solutions to UK businesses and the public sector.
Both Wavenet and Daisy have expanded significantly over recent years through organic growth and strategic acquisitions.
In June 2023, Daisy acquired ECSC, bolstering its cyber and security capability. Wavenet has completed six acquisitions since 2021, with successful integration delivering a steep growth trajectory, as well as significantly building its IT services, cyber and next generation communications capability.
Wavenet chairman, Bill Dawson, said: “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.
Bill Dawson
“Daisy is a well known and well respected business, and both parties bring unique but complementary strengths to the table. Our shared vision is to create a best-in-class business that will help shape the future of next generation technology.”
Matthew Riley said: “Daisy and Wavenet are a great fit, not just in terms of our current operations but our future aspirations and our culture. People are a top priority for both businesses, and we believe that our combined breadth of skill and depth of expertise will be unrivalled in our marketplace.
“The newly combined business will be primed for growth through the increased scale of our offering, greater market reach and cross-selling opportunities.
“We will also strengthen our existing alliances with global tech providers with the new business becoming the number one partner for many.”
Wavenet was advised by Travers Smith, with DWF Group advising Daisy Corporate Services.
