Daisy Group, a provider of unified communications to the SME and mid-market, has announced that is has acquired the entire issued share capital of Fone Logistics, provider of mobile handsets and airtime to the SME market via an independent dealer channel, for a cash consideration of £3.6 million.
Fone Logistics will be managed by Daisy Group business Anglia Telecom Centres (Daisy Distribution).
The unaudited management accounts of Fone Logistics Ltd for the six months ended 30 April 2010 show revenues, gross profit and EBITDA of £19.6 million, £2.1 million and £0.5 million respectively. Daisy has identified certain areas of the business which are to be discontinued or hived out at completion. Therefore, revenues and gross profits of the continuing business for the six months ended 30 April 2010 were £11.8 million and £1.4 million respectively with EBITDA being unaffected.
Consistent with the Daisy acquisition strategy, and as with previous transactions, Daisy expects to generate significant operating synergies through this transaction and also believes the addition of 600 dealers will bring more business opportunities to the Group.
Matthew Riley, chief executive officer of Daisy, said: “We are delighted to be able to announce this acquisition, which increases our competitive position in the mobile section of the unified communications market. This acquisition is also consistent with the Group’s stated ambition to further consolidate the fragmented communications market and enhances our product offering to the UK SME market. We will be continuing to pursue this strategy.”
Fone Logistics has strong commercial relationships with three of the major UK networks, O2, Vodafone and Orange. It also has trading relationships with a number of the leading manufacturers including Nokia and Sony Ericsson.
Based in Northumberland, Fone Logistics supplies mobile handsets and airtime to more than 600 dealers, who predominantly sell to small-medium businesses, receiving commission from the mobile networks for connecting customers. The business has also started selling a full suite of unified communications products.