Riley leads £494m Daisy buyout

Consortium of investors join forces to take comms firm private

Telecoms firm Daisy has agreed to be taken private by a group of investors led by its chief executive Matthew Riley in a deal which values the firm at almost £500m.

In the summer, Riley and investors Toscafund and Penta got the wheels turning on a possible buyout, but proceedings were since delayed three times to give them extra time to mull over the bid.

Today Daisy announced that it has reached an agreement with the trio, which has created new company Bidco as a vehicle to complete the transaction. Under the terms of the offer, shareholders of the firm will receive 185p in cash for each share. The offer values Daisy at approximately £494m.

Asset manager Toscafund has been an investor in Daisy since 2009 and claims to have a "detailed understanding" of the firm's business model and the UK telecoms market. Fellow investor Penta is a private equity firm which focuses primarily on mid-market firms and those operating in the telecoms space.

Riley (pictured) said the offer will prime Daisy for the next stage of its growth.

"The offer provides Daisy shareholders with a cash premium today and represents a positive development for our 59,000 customers and continuity for our 1,500 employees. It also positions the company for its next phase of growth in the UK telecoms and IT sector, with the backing and strategic and financial guidance of Toscafund and Penta," he said.