The deal was first reported by Sky News earlier this week and will see Wavenet’s existing private equity partner Macquarie Capital Principal Finance become the largest shareholder.
Matthew Riley, chairman of Daisy Group, and other existing Daisy shareholders will retain a minority stake in the business. Riley will also join the board as a non-executive director.
The combined business will generate a turnover of £500 million, with 2,000 employees supporting over 22,000 business and public sector customers with cyber, cloud and intelligent network solutions.
Both Wavenet and Daisy have expanded in recent years through organic growth and strategic acquisitions. In June 2023, Daisy acquired ECSC to add broader cyber and security capabilities to its team. Wavenet has completed six acquisitions since 2021, including AdEPT Technology Group in April 2023.
Bill Dawson, chairman, Wavenet (pictured), said, “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.
“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.”
Matthew Riley, chairman, Daisy Group, added, “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.
“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.”
The transaction is subject to regulatory approvals. Wavenet was advised by Travers Smith, with DWF Group advising Daisy Corporate Services.