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RSM Tenon and Berryman announce sale of Managed Communications Limited to Daisy Group plc
06/02/2010
RSM Tenon and Berryman have today announced the sale of Managed Communications Limited to Daisy Group plc. The deal completed on Saturday afternoon (6th February 2010).
Based in Nottingham Managed Communications provides data networks through bonded ADSL and SDSL lines to its base of approximately 800 SME customers. With search engine optimisation tools, the company sells internet access, VPN, managed security, email and managed bandwidth solutions through its www.managedcomms.co.uk site and VPN services through its www.vpn.co.uk site.
Daisy Group plc is a leading provider of integrated voice and data services to small-medium businesses. It has acquired the entire issued share capital of the business for a potential initial cash consideration of £6.3m.
As a lower cost alternative to leased lines, bonded DSL is a popular choice for smaller businesses, is a higher margin product and typically enjoys contracts of 3 to 5 years. The success of the offering to date gives the management team confidence that Managed Communications' products could answer the needs of the bottom 25% of the leased line market.
Managed Communications has been a client of RSM Tenon’s Nottingham office for just over a year. The corporate finance team, led by Paul Bevan and Mike Quinn along with Micky Johal, identified Daisy Group plc as a potential buyer due to the strategic fit of the two businesses and managed the deal through to completion. Commenting on the deal Paul Bevan, head of corporate finance in the Midlands said ‘This is a first class result for both Managed Communications and Daisy – they fit perfectly. In Nathan Hill-Haimes and Stuart Fraser we found two exceptional entrepreneurs and not least a very well run business. It has been a real pleasure advising and leading the transaction and we wish Managed & Daisy every success together going forward.
Nathan Hill-Haimes and Stuart Fraser will continue on in the business as joint managing directors. Nathan commented on the sale saying “There is massive potential for Managed Communications IT data services. This acquisition by Daisy represents a huge cross sale opportunity into tens of thousands of customers, backed by the support of a dynamic PLC.”
Legal advice was provided by Roger Harcourt at Berryman for Managed Communications. Roger added "Berryman has acted for Managed Communications since it was conceived. It's a been a real pleasure to help Nathan and Stuart move through various phases of the business and achieve a fantastic exit in just a few years. I'm sure Managed Communications will prove a valuable addition to Daisy's offering."
Matthew Riley, Chief Executive Officer of Daisy, said,
"Strategically this is the right acquisition for us as we move forward into a data rich and more converged world. The combination of Managed Communications and their product offering, with Daisy's sales force and SME customer base, creates cross-selling potential and the opportunity for margin improvement.
Through this acquisition, we have strengthened our data offering, increased our range of services and will be able to provide our SME customers with more of what they want."
Eversheds provided legal advice for Daisy Group plc.
Submitted by Julia Reid, Marketing Manager RSM Tenon