14 Aug 2009 14:27
14 August 2009
Daisy Group plc
Acquisition of telecoms division of Redstone PLC
Daisy Group plc (DAY.L, "Daisy" or the "Company"), the complete provider for communication services in the UK, announces that it has today entered into an agreement to acquire the telecommunications division of Redstone PLC ("Redstone Telecom") for £17m.
Daisy has conditionally agreed to acquire Redstone Telecom, which comprises the assets of Redstone PLC's fixed line business and also its wholly owned subsidiary Symphony Holdings Ltd, which largely comprises the mobile service provider and distribution business. As part of the Transaction, an agreement has been reached for the supply of fixed line and mobile services to the Group.
Redstone Telecom is a UK based telecoms provider, offering fixed line and mobile telephony services, distribution services and hardware sale and maintenance. In the year ending 31 March 2009, Redstone Telecom generated unaudited Revenue of £74.7m and EBITDA of £4.6m, not including the apportionment of Redstone's central costs.
The consideration has been satisfied through the payment of £17m in cash. The deal is expected to complete on 28 August 2009.
Commenting on the acquisition of the Redstone Assets, Peter Dubens, Chairman, said,
"The acquisition of Redstone is another step in pursuing our stated strategy of becoming one of the largest UK providers to the SME and mid-market of telecommunications services and solutions. Following our acquisitions of AT Communications and Eurotel, Daisy is now beginning to build some important scale."
Matthew Riley, Chief Executive Officer of Daisy, said:
"Daisy's acquisition of Redstone's telecoms division further strengthens our position in the reseller market. This transaction is another step towards the group consolidating this fragmented sector and we will continue to pursue this strategy, building on our proposition of providing a truly converged product set to the SME and mid-market business customer."
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For further details, contact:
| Daisy Group plc Matthew Riley, Chief Executive Officer Peter Dubens, Executive Chairman Stewart Porter, Chief Financial Officer Katharine Butler, PR Executive | Tel: 01282 607785 |
| Liberum Capital Limited Steve Pearce Tom Fyson | Tel: 020 3100 2220 |
| Financial Dynamics Juliet Clarke Erwan Gouraud | Tel: 020 7831 3113 |