Matthew Riley, the CEO of Daisy Group, a leading UK IT services company, is reportedly on the brink of finalizing a merger deal with Wavenet, a communication and technology solutions provider based in the UK. According to sources disclosed to Sky News, the merger is in its final stages.
If completed, the merger will involve Daisy’s Corporate Service Business being integrated into Wavenet, which is primarily owned by the Australian financial services group Macquarie. This move would result in the formation of a unified entity under the Wavenet brand, with an estimated enterprise value surpassing £1 billion.
The combined company, still under the leadership of executive chairman Bill Dawson, is projected to employ over 2,000 individuals. Riley, the current CEO of Daisy Group, is anticipated to join Wavenet’s board as a non-executive director. The merged entity is set to cater to a vast clientele, including prominent names like the NHS and Transport for London, serving over 20,000 enterprise customers across the UK.
Philip Grannum, CEO of Wavenet, expressed enthusiasm about the potential merger, highlighting the consolidation’s ability to position Wavenet as the largest independent Managed Service & Security Provider for large SME & corporate customers. Grannum emphasized the enhanced access to enterprise-grade solutions and superior customer service that the merger would offer to both companies’ clients.
Macquarie is expected to maintain its status as the largest individual stakeholder in the new Wavenet, with additional financial backing from Ares through debt financing. This merger follows Daisy’s recent acquisition of 4Com, a Bournemouth-based communications, IT, and broadband provider, further illustrating the company’s aggressive expansion strategy.
Riley’s interest in 4Com stemmed from its innovative cloud communications product HiHi, featuring integrated video calling technology and a comprehensive software platform. Over the years, Daisy’s strategic moves have solidified its position as the UK’s second-largest player in the SME telecommunications market, trailing only behind BT.
Originally listed on the London Stock Exchange, Daisy transitioned to private ownership in 2014 with support from Toscafund Asset Management. The impending merger with Wavenet marks another significant milestone in Daisy Group’s growth trajectory, underscoring its commitment to innovation and market leadership in the UK’s IT services sector.
