Daisy is likely to take a break from acquisitions because it now "has all the ingredients to deliver in the converged world of communications, IT and cloud", its CEO Neil Muller has told CRN.
Muller (pictured) said the Lancashire-based firm has now accumulated the converged telecoms, IT and cloud capabilities needed to fuel speedy organic growth.
The addition of Alternative has propelled Daisy's revenue runrate to £720m, but Muller said the plan is to push on to the £1bn goal set by founder Matthew Riley through organic growth, leading on a convergence message that he claimed differentiates it from competitors.
"While we've made 50 acquisitions, it is unlikely that we will make another one in the foreseeable future. We are now in an organic growth strategy," he confirmed.
"My job is to take this organisation from a circa £720m revenue stream to a £1bn business. If you apply what I believe to be the opportunity - which is double-digit organic growth - that should take about three years."
Muller added: "The Phoenix acquisition effectively overnight gave us the capability we needed to serve the strategic intent of the business, which is to be a converged services aggregator of business communications, IT and cloud. We believe that to be a digital enabler of UK businesses, you must have these three capabilities within your kitbag. Whereas traditionally, most people that exist in the market are either telecoms, IT or cloud, we can deliver all three of those things. I think that makes us very different."
Muller said Daisy's organic growth over the last 12 months stands at five per cent, outstripping the growth of the overall IT and communications market by four- of five-fold.
"I'm pleased but not satisfied with that; I know we can do better," he said.
Before the Alternative acquisition, Daisy drew roughly £300m revenues from its SMB activities, £200m from its Daisy Corporate Services midmarket arm and £100m from the large enterprise segment, which it serves indirectly.
The Alternative purchase, which closed on 23 December, will make midmarket its largest unit, Muller said.
"We are reversing ourselves into the Alternative capability here, which now makes it broadly speaking £300m, £320m, £100m. We are nearing planning completion, which I think is the most important part of the integration, and then we will get into the execution pretty immediately," he said.
Daisy's EBITDA now stands at £120m-£125m, and roughly 75 per cent of its revenues are recurring, Muller said.
"What people are surprised about is the beautiful balance of our product lines," he added. "Until around five years ago, circa 90 per cent of our revenues came from lines and calls. Today, networking is £180m, mobile £150m, data £180m, business continuity and cloud £100m and systems £140m. That covers all the areas you need to deliver a converged offering."
When asked about press claims about a possible return to the stock market, Muller said: "We didn't instigate the article. We are always the subject of media speculation, and that's all it is: speculation. Right now I am fully focused on organic growth, and helping our customers and partners to do the same."
Muller said he has committed to speaking to all 4,000 of Daisy's staff across its 30 offices at least twice a year.
"We're only as good as the people that represent us, because we are a services business," he said.
For the full interview, catch the March edition of CRN, which is out on Monday 13 March.
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