Daisy buys Managed Communications for £6m

Acquisitive voice and data services provider Daisy Group has stumped up £6.3m in cash for Notts-based Managed Communications Ltd in its first buy of the new year. Daisy has undertaken to pay £4.65m on completion with a further £1.66m to be paid after six months, subject to finalis

Acquisitive voice and data services provider Daisy Group has stumped up £6.3m in cash for Notts-based Managed Communications Ltd in its first buy of the new year.

Daisy has undertaken to pay £4.65m on completion with a further £1.66m to be paid after six months, subject to finalised completion accounts. An earn-out consideration will become payable in late-2011.

Managed Communications specialises in provision of data networks over bonded ADSL and SDSL lines. It also supplies Internet access, VPNs, managed security, email and managed bandwidth. It claims bonded DSL provides higher margins for SME users and reckons its products could meet the needs of the bottom 25% of the leased line market.

"Strategically this is the right acquisition for use as we move forward into a data rich, converged world," said Daisy CEO Matthew Riley. "The combination creates cross-selling potential and the opportunity for margin improvement."

Daisy went on something of a spree during the course of 2009 ; after performing a reverse takeover on the Freedom4 Group in the summer it spent £36m buying the assets of Eurotel, AT Communications and Redstone Telecom in quick succession.

The firm posted a pre-tax loss of £2.09m in December 2009 after taking a hit from discontinued operations, but indicated at the time that it would expand its business through further acquisitions.

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