Wavenet and Daisy Corporate Services confirm merger

The deal is expected to create a £1bn+ entity

Entrepreneur Matthew Riley, the founder and chairman of Daisy Group has finalised a significant merger with Wavenet, a company primarily owned by Australian financial giant Macquarie, the two companies have confirmed following a report by Sky News this week.

The merger entails the separation of Daisy Corporate Services from the conglomerate, and then absorbing it into Wavenet.

The resulting company, to be named Wavenet, is set become a leading managed services provider serving more than 20,000 UK enterprise customers, including notable names such as Costain, the NHS, and Transport for London.

The deal is expected to value the combined entity at over £1bn.

Both companies feature in CRN's Top VARs, at No. 16 and No. 34 respectively, with nearly £330m in combined UK revenue.

Macquarie, retaining its position as the largest individual shareholder, is said to be supporting the deal along with debt financing from Ares.

This transaction marks another significant move by Riley, following Daisy's £215m acquisition of cloud communications provider 4Com in April.

Wavenet will continue under the leadership of executive chairman Bill Dawson, with Riley assuming a non-executive director role on the company's board.

Bankers at Houlihan Lokey are advising on the deal.

Riley is no stranger to M&A at this scale, having bought out including XLN Telecom for £210m in 2022.

Initially listed on the London public market, Daisy transitioned to private ownership in 2014 with support from Toscafund Asset Management.

"We are thrilled to be joining forces with Daisy. By combining our strengths, resources and expertise, we are poised to create a stronger and more innovative organisation, well positioned to maximise on the rising tide markets of cyber, cloud and intelligent networks, commented Wavenet chairman Bill Dawson.

"Daisy is a well-known and well-respected business, and both parties bring unique but complementary strengths to the table. Our shared vision is to create a best-in-class business that will help shape the future of next generation technology."

"Daisy and Wavenet are a great fit, not just in terms of our current operations but our future aspirations and our culture. People are a top priority for both businesses, and we believe that our combined breadth of skill and depth of expertise will be unrivalled in our marketplace, added Riley.

"The newly combined business will be primed for growth through the increased scale of our offering, greater market reach and cross-selling opportunities. We will also strengthen our existing alliances with global tech providers with the new business becoming the number one partner for many."