With an estimated annual revenue of around £1.4 billion, the merged company, consisting of nearly all of Virgin Media O2 Business and Daisy Group, will be integrated into VMO2, with Daisy Group holding a 30% stake.
The new company will be led by Daisy Group founder Matthew Riley as chairman, and Jo Bertram, managing director of VMO2, as CEO, the telecoms giant revealed.
As a result, the new company will provide a suite of digital-first connectivity solutions and managed services, including cloud communications tools, 5G Private Networks, IoT connectivity, security solutions and AI-driven products.
Meanwhile, the business will be supported by wholesale agreements for fixed and mobile connectivity with the telecoms giant, as well as supplier agreements with Telefónica and Liberty Global.
At first, both businesses will operate under their separate brands from their current office bases, with the transaction expected to close in early H2 2025, subject to customary regulatory approvals.
Lutz Schüler, CEO of Virgin Media O2, said: “Combining Virgin Media O2 Business with Daisy Group is the perfect pairing and creates a new British business connectivity powerhouse and greater competition in the market. For us, it’s a big step forward in our journey to boost B2B growth and provide UK businesses of all sizes with the best digital and connectivity offerings.
"Following completion, the new company will have the scale, talent, focus and infrastructure needed to drive digital transformation and provide business customers with an innovative one-stop shop for all their communications and IT needs. We can’t wait to get started on this next chapter in partnership with Daisy.”
Daisy Group founder and chairman, Matthew Riley, added: “This is a significant milestone in Daisy’s 24-year history. This transformational transaction will revolutionise the telecommunications and IT landscape and create the most comprehensive offering for businesses of all sizes across the UK.
"Growth is top of the political and business agenda – inextricably linked to this is access to world-class IT and communications infrastructure that is integrated and can scale.
"Our new entity, which brings together two highly successful companies, will deliver a comprehensive solution for the fast-changing needs of UK organisations supported by specialist teams that have a relentless focus on customer service. It will be driven by the entrepreneurial spirit for which we are known and will catalyse the next phase of our ambitious growth plans.”
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