A week after revealing they had secured a further £40m of expansion funding Daisy Group has announced the acquisition ofrival network services company O-bit Telecom.
O-bit, based in Buckinghamshire, is a key competitor of Daisy Group in the reseller channel, having enjoyed rapid growth since its establishment in 2002. Its products are aimed at internet service providers (ISPs), telecoms resellers and IT services organisations, reselling to SME and mid-market business customers.
This is Daisy Group’s eleventh acquisition since listing on the Alternative Investment Market (AIM) in July 2009. It is consistent with the Daisy Group acquisition strategy, and as with previous deals, provides a range of communications products and services to the channel including network services, WLR, CPS, Broadband and Data Services.
O-bit, with its 120 resellers and 170 virtual resellers, is a strategic fit with Daisy Wholesale. The existing CEO, David Breith, and his senior management team will remain with O-bit and report to Daisy Wholesale’s Managing Director, Carl Churchill who will lead its integration and drive further growth.
Following the acquisition, Daisy Wholesale will have in excess of 1,000 resellers. With the deal also enhancing Daisy’s capabilities in Data and Network services, there will be significant cross-sell opportunities for O-bit resellers to access Daisy Group’s other core offerings; Mobile solutions and Systems services.
With a full product suite complemented by support and training, Daisy Wholesale say their reputation for helping its resellers to grow and develop their offerings will continue.
Carl Churchill, Managing Director of Daisy Wholesale, said: “David has built a strong and entrepreneurial business at O-bit and he is someone we have admired as a competitor for some time. By integrating O-bit into Daisy Wholesale, we will create a major force in the channel and will see many benefits as a result, including commercial competitiveness, capability and scale.
“Daisy Wholesale is one of the largest communications providers in the channel and offers a complete end-to-end service. We would like to welcome O-bit into Daisy Group and look forward to working with its resellers and helping them grow.”
David Breith, chief executive officer of O-bit Telecom, said, “I am extremely happy with the deal we have done with Daisy. With the additional products and services available, this is a fantastic opportunity for customers to increase their portfolio. Daisy has been committed to growth as well as customer excellence in the past months and this will continue throughout 2011.”