Daisy Group plc (AIM: DAY), a leading service provider of unified business communications services, is pleased to announce that it has reached agreement with the SpiriTel Directors on the terms of a recommended cash offer to be made by Daisy Group for the entire issued and to be issued ordinary share capital of SpiriTel at a price of 51.5 pence per SpiriTel Share, valuing the share capital of SpiriTel (on a Fully Diluted basis) at £27.3m.
Like Daisy Group, SpiriTel has grown both organically and acquisitively and positioned itself as a consolidator of the UK telecoms seller market. It has built a substantial customer base and scale through selective earnings-enhancing acquisitions. Since 2006, SpiriTel has completed 12 acquisitions which have been consolidated using SpiriTel’s integration framework.
The acquisition of SpiriTel, with its 4,000-strong customer base of SMEs, larger national and international companies and organisations, will add to Daisy Group?s already extensive customer base and move it more firmly into the mid market.
The SpiriTel Group is a provider of hosted VoIP solutions and was recently one of the first companies in the UK to gain accreditation to deliver Mitel’s virtualised telephony platform to corporate customers. It is also a large independent reseller of mobile voice and data solutions to business customers, with a total of almost 40,000 connections. This, alongside its nationwide engineering footprint, will enhance and complement Daisy?s four core product areas, and augment Daisy Group?s Mitel capabilities.
Commenting on the Offer, Matthew Riley, Chief Executive Officer of Daisy Group Plc, said:
“This is the largest acquisition the Company has made since coming to market last year. The Board believes that this acquisition gives Daisy Group a strong foothold in the mid-market, strengthening our sales team and engineering force, while significantly enhancing both our product portfolio and customer base.
?With our data hosting capabilities from the former Vialtus business, this deal gives us a great cross-sale opportunity to sell hosted solutions and fill our three data centres in London, Manchester and Fareham. In addition the business? position as a Mitel Premier Partner, coupled with a nationwide engineering force will see enhancements to the Group?s telephone systems and maintenance division.
?Over the last 18 months, Daisy Group has acquired and integrated 10 businesses. The Board believes the experience of those acquisitions should enable an efficient integration of SpiriTel into the Daisy Group platform.”