Daisy buys into healthcare services with NEG
Acquisitive Daisy Group continues to cut a swathe through the business comms space after dipping into its warchest to acquire NEG MBO Two Ltd for an initial cash consideration of £23.5m.
NEG specialises in networking and communications services for the primary care sector and claims over 2,000 customers, 1,200 of which are GP surgeries using its 'Surgery Line' brand.
In its most recent set of accounts, the firm made EBIDTA of £3.4m during the 10 months to the end of October, up from £2.9m in its fiscal 2009, and booked sales of £11.2m. Daisy said NEG had good revenue visibility, coupled with lengthy contracts and low rates of customer churn.
CEO Matthew Riley said the acquisition was a "continuation of our consolidation drive in the fragmented reseller market."
"NEG has a proven track record for organic growth, further potential to grow, and provides the Group with a strong footprint in a market in which we believe we can increase market share further," he added.
At this point in time, Daisy claims to service over 75,000 SME customers through its retail channel services, while its wholesale channel services 850 active resellers and its distribution channel is responsible for 250 active dealers and over 65,000 connections.