Daisy Group has announced a significant merger with Wavenet. This strategic move involves separating Daisy Corporate Services (DCS) from Daisy Group and integrating it into Wavenet. The new combined entity, retaining the name Wavenet, is expected to serve over 20,000 UK enterprise customers, including the NHS and Transport for London.*
The merger positions the new Wavenet with an estimated value of over £1bn, with Macquarie as the largest individual shareholder. The deal is also supported by debt financing from Ares. Bill Dawson, Wavenet’s executive chairman, will continue to lead the company, while Matthew Riley, founder and chairman of Daisy Group, will take on a non-executive director role.
Daisy Group, initially listed on the London public market, became privately owned in 2014 with support from Toscafund Asset Management. The group’s overall revenue grew by approximately 27% to £417m in 2023, driven by Connectivity and IT services growth. Daisy Group has two divisions: Daisy Corporate Services (DCS), catering to the mid to enterprise market, and its Small to Medium Enterprises (SME) business.
One challenge for Daisy Group has been its significant debt balance of £462m, accumulated through a series of acquisitions. Notable purchases include the XLN Group in 2022, cyber security service provider ECSC Group in 2023, and cloud communications provider 4Com for £215m in April 2024.
The merger with Wavenet signifies Daisy’s strategic move towards strengthening its position in the IT and cloud services industry. The combined entity aims to leverage Wavenet’s established customer base and expertise in providing advanced IT, communications, and cloud solutions.