Broadband, communications and managed service providers (MSP) Wavenet and Daisy Corporate Services have this afternoon announced that they intend to “join forces” to create the UK’s “largest independent IT managed service provider.”
The merger will, it’s said, create a £500m revenue company that supports over 22,000 businesses and public sector organisations delivering cloud, cyber security and connectivity solutions. The deal will also see Daisy Chairman, Matthew Riley, join the Board as a non-executive director.
Both Wavenet and Daisy have expanded a fair bit in recent years, both “through organic growth and strategic acquisitions”. In June 2023, Daisy also acquired ECSC, bolstering its cyber and security capability. Wavenet has similarly completed six acquisitions since 2021 to boost its growth trajectory, as well as building up its IT services, cyber and next generation communications capabilities.
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.
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, Chairman of Daisy Group, added:
“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.”
The deal will see Wavenet’s existing private equity partner Macquarie Capital Principal Finance become the largest shareholder, with Matthew Riley and other existing Daisy shareholders retaining a minority stake in the business. The transaction is, however, still subject to customary regulatory approvals.
Wavenet was advised by Travers Smith, with DWF Group advising Daisy Corporate Services.