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.

What's new

CreaTech Frontiers Launch Unlocks £250K in Funding for West Midlands Creative Innovators

Creative SMEs in the West Midlands are being given a major boost with the launch of CreaTech Frontiers, a new innovation cluster that has opened applications for the first £250,000 round of grant funding.

The programme, which offers individual grants of up to £10,000, is designed to help freelancers and small creative businesses develop groundbreaking ideas at the intersection of creativity and technology. The funding forms part of a £7.2 million, five-year initiative led by a consortium of regional powerhouses including Birmingham City University (BCU), University of Birmingham, Coventry University, University of Warwick, and the Royal Shakespeare Company. It’s funded by the Arts and Humanities Research Council as part of the UK Research and Innovation's Creative Industries Cluster Programme.

Photo Credit: University of Warwick

Officially launched on April 29 at STEAMhouse, BCU’s innovation centre, CreaTech Frontiers marks the first time the West Midlands has received funding through this prestigious national scheme.

Professor Lamberto Coccioli, Director of CreaTech Frontiers, said:

“These early-stage grants will give creative entrepreneurs access not just to capital, but also to university-led research and resources that can turn ambitious ideas into reality. This is about unlocking cultural, social and economic value across the region.”

CreaTech Frontiers is aiming to ignite a wave of innovation in sectors like gaming, immersive tech, live performance, visual arts, and creative technologies. Successful applicants will also gain access to facilities across the five partner institutions, along with specialist academic support during the R&D phase.

Future plans include a second, larger round of grant funding, a pilot with Birmingham Opera Company, collaborative projects with the Royal Shakespeare Company, and the formation of an apprenticeship working group to support skills development.

Rachel Davis, Director of Warwick Enterprise, said:

“Through this collaboration, we’re strengthening the region’s identity as a creative and tech innovation hub. With a shared focus on inclusion and sustainability, CreaTech Frontiers will ensure diverse voices are at the forefront of this growing ecosystem.”

The West Midlands Combined Authority is also backing the initiative, which it believes could contribute £65 million and create 1,500 jobs by 2030 within the regional creative and gaming economy.

West Midlands Mayor Richard Parker added:

“Our region is full of bold, young thinkers pushing the boundaries of tech and creativity. CreaTech Frontiers connects these minds with the world-class research coming out of our universities, creating the conditions for global impact.”

Applications open Monday 2 June 2025.

Interested SMEs can register now

to be part of the next generation of CreaTech pioneers.

By Anushka Malhotra

2 May