Daisy sees VoIP boom after BNS buy-out

Serial acquirer continues consolidation quest with £10.45m buy-out

Matthew Riley: This acquisition will strengthen our position in the reseller market

Daisy has continued its quest to consolidate the UK SME telecoms sector with the £10.45m acquisition of BNS Telecom Group, its second buy-out in 10 days.

The Lancashire-based firm announced today that it has agreed a cash deal to acquire BNS' fully diluted ordinary share capital at a price of 20p per share. BNS operates as a voice over IP (VoIP) carrier, as well as reselling hardware, data, services and fixed and mobile lines and minutes. The Northumberland-based company delisted from the Alternative Investment Market (AIM) last year.

BNS has 8,000 customers and posted EBITDA of £3.2m on sales of £36.9m in its last fiscal year. Daisy claims its acquisition will bolster its standing in the reseller market.

The acquisitive telecoms specialist added that BNS' VoIP offering would provide a wealth of opportunities to cross-sell lucrative long-term contracts into its existing customer base. The acquisition also includes BNS subsidiary 3g Comms, a mobile specialist holding Vodafone's Premier Service Provider badge.

Daisy has made no secret of its desire to consolidate the SME and mid-market telecoms arena and today indicated that the fragmented nature of the market would provide many more acquisition opportunities. Since floating on the AIM last year, the firm has embarked on a buying spree, including deals for AT Communications, Eurotel, Redstone Telecom and Managed Communications, which was bought for £6.3m last week.

Daisy chief executive Matthew Riley said: “This offer makes great sense for Daisy, given the scale and position of BNS within the UK SME market. This acquisition will strengthen our position in the reseller market and is another step towards Daisy consolidating this fragmented sector."