Daisy reunited with private equity backer Oakley Capital

Oakley takes a minority stake in Daisy for £39m

Daisy has been reunited with former backer Oakley Capital as the investment firm snaps up a minority stake in the group for £39m.

Oakley bankrolled a deal for Daisy to take over collapsed integrator 2e2's datacentre business and assets in 2013. The private equity firm held a 13.6 per cent stake in Daisy, before it was privatised in January by investors Toscafund, Penta and Daisy founder Matthew Riley (pictured), in a deal worth £494m. Oakley, alongside Riley, led an acquisition of the Irish and mainland European businesses of VAR Damovo, later in January.

Now Daisy and Oakley are together again, with the private equity firm's Fund II, announcing today's deal for the minority stake.

Peter Dubens, director of Oakley, who also served as executive chairman at Daisy before its privatisation, said he is happy to be once again working with Riley and his company.

"We are delighted to be acquiring a stake in Daisy – it is a business we know well and one that has created very significant value for Oakley in the past," he said. "We look forward to working with our fellow shareholders and the management team to generate further growth and value over the coming years."

"Our long-term commitment to successful sectors and entrepreneurs is a key feature of our investment strategy and returns profile. We are delighted to be working once again with Riley, one of the UK's leading TMT [technology media and telecommunications] business builders."

Riley said the firm's recent £135m deal for Phoenix, completed last month, strengthens the firm's IT services and solutions position.

"We look forward to working again with Oakley and continuing our mission to provide essential services to our customers to allow them to run and grow their businesses," he said.

Daisy – which has already completed the acquisitions of Damovo and a slice of Calyx and Phoenix IT Group this year – has previously indicated to CRN that inorganic growth will be important as it pursues its goal of becoming a £1bn-turnover company in the next five years.