Merger Creates UK’s Biggest Independent IT Managed Services Provider
By Anushka Malhotra
1 minute 20 seconds
Growth
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Quick Read: Nelson-based Daisy and West Midlands' Wavenet join forces, forming a £500m-turnover group with over 2,000 staff and 22,000 customers, aimed at delivering cutting-edge cyber, cloud, and network solutions.
In a significant move reshaping the landscape of the UK's IT managed services sector, Nelson-based telecoms group Daisy and West Midlands' Wavenet have announced their merger. The combined entity, with a projected turnover of £500 million, will boast a workforce of over 2,000 employees and serve more than 22,000 customers across the country.
The deal, which is subject to customary regulatory approvals, will see Wavenet's existing private equity partner, Macquarie Capital Principal Finance, emerge as the largest shareholder. Meanwhile, Daisy Group's chairman, Matthew Riley, and other existing shareholders will retain a minority stake in the business. Matthew Riley is slated to join the board of the newly formed entity as a non-executive director.
This merger brings together two dynamic companies that have witnessed substantial growth through both organic expansion and strategic acquisitions. Daisy's recent acquisition of ECSC in June 2023 strengthened its cyber and security capabilities, while Wavenet has completed six acquisitions since 2021, significantly enhancing its IT services, cyber, and next-generation communications offerings.
Wavenet's chairman, Bill Dawson, expressed excitement about the merger, stating, "By combining our strengths, resources, and expertise, we are poised to create a stronger and more innovative organisation, well positioned to capitalise on the rising tide markets of cyber, cloud, and intelligent networks."
Matthew Riley echoed this sentiment, emphasising the alignment in vision and culture between Daisy and Wavenet. "The newly combined business will be primed for growth through the increased scale of our offering, greater market reach, and cross-selling opportunities," he said. "We will also strengthen our existing alliances with global tech providers, with the new business becoming the number one partner for many."
Wavenet received legal advice from Travers Smith, while Daisy Corporate Services was advised by DWF Group.
The merger of Daisy and Wavenet signals a new era in the UK's IT managed services sector, promising enhanced capabilities, expanded market presence, and innovative solutions for businesses and the public sector alike.
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