Rumours about the potential sale of Daisy, one of the UK’s leading providers of IT and business communication solutions, are in full swing. Today, it seems like everyone is talking about who might be purchasing the group, as well as how much the founder is willing to sell for. According to some whispers in the industry, it’s private equity firms that are leading the way in the bid wars, including groups like CVC Capital Partners.
Oakley Advisory and UBS – two financial companies hired to help sell the company in 2017, are planning to send out confidential details to prospective buyers considering the company in April, according to some sources. However, there are also some rumours that Daisy’s advisers have already been involved in some informal talks with suitors, though nothing can be arranged just yet.
How Much is Daisy Group Actually Worth?
When talks about the possibility of a Daisy Group sale began last year, many rumours suggested that the organisation would be sold at a value of somewhere in the region of £1.5 billion. Unfortunately, experts suggest that the brand is unlikely to see such a significant price tag if they maintain the interest of investors, rather than other telecommunications companies. The sale process is expected to value the provider of telecom services at closer to approximately £1.1 or £1.2 billion.
These reduced prices would mean that the Daisy Group falls unfortunately short of the expectations held by Daisy Group founder, Matthew Riley, the man who launched the company from his garage more than 17 years ago and grew it from scratch through a series of acquisitions. Interestingly, a spokesperson appointed to speak for Riley said that he wouldn’t be willing to give up the business for a price that fell under the £1.5 billion valuation. However, no information has yet been revealed about what kind of price Matthew is looking for.
The Accelerating Value of Daisy Group
In 2009, Daisy was listed on the London Stock Exchange, but the group was quickly taken private in 2014, in a deal valued at £494 million by a consortium of Riley’s a hedge fund from Toscafund and a private equity purchase from Penta Capital. Since then, Daisy has continued to advance and develop with a series of high-profile acquisitions across the year, including the purchase of around 46 smaller companies. More recently, the organisation purchased telecom companies like Alternative Networks and Phoenix IT.
With an EBITDA figure that was predicted to be somewhere in the region of £120 million in 2017, Daisy has seen a growth of around 100% since it was last listed on the public stock exchange. For now, we’ll have to wait and see whether Riley manages to get the price he’s been hoping for, or whether he has to settle for less when selling his home-grown company.
