Daisy boosts Vodafone standing with Outsourcery buyout

Comms provider picks up hosting specialist's £20m Vodafone services business in £12m cash deal

Insatiable acquirer Daisy claims it has become Vodafone's top UK provider of mobile managed services after buying a chunk of hosting specialist Outsourcery.

The Lancastrian comms firm has paid £12m cash to acquire Bury-based Outsourcery's Vodafone mobile service business. The unit will sit in the Daisy Mobile wing, but the company claimed the deal will provide big cross-selling opportunities across its wholesale and distribution divisions.

For the 12 months to the end of 2010, Outsourcery banked EBITDA of £1.2m on sales of £42.7m. Its hosting and non-Vodafone mobile services operations, which it will hold onto, posted revenue of £23.2m and EBITDA of £2.6m. This means Daisy has got its hands on a near-£20m sales business, but one that posted a £1.4m loss last year.

Matthew Riley (pictured), chief executive of Daisy, said: "[This] transaction helps position us for the increase in smartphone adoption and the uptake in mobile data, which we are seeing in the industry.

"The acquisition has been funded through the group's banking facility, the recent extension of which illustrates the support the group has behind its strategy. This acquisition is yet another step towards achieving the group's stated goal of consolidating the fragmented reseller marketplace."