Virgin Media O2 and Daisy Group are to unveil a merger of their enterprise communications and IT operations in a bid to create a £3bn telecoms powerhouse.
Virgin Media O2 will personal 70% of the brand new enterprise, whereas Daisy Group will personal 30%.
The tie-up will create a stronger challenger to BT Group, Britain’s largest supplier of IT and telecoms providers to small and medium-sized companies (SMEs).
The brand new VMO2-Daisy enterprise may have roughly 700,000 clients, and be valued at between £2.5bn and £3bn together with debt.
Combining the 2 operations is anticipated to supply substantial price financial savings, based on one insider.
Telecoms trade sources mentioned that Matthew Riley, the Daisy Group founder, would chair the corporate, whereas Jo Bertram, the managing director of Virgin Media O2 Enterprise, could be its chief govt.
It’s the newest in a string of offers engineered by Mr Riley since he based Daisy in 2001.
One supply mentioned it was prone to be subjected to rigorous scrutiny by the Competitors and Markets Authority, however was not anticipated to come across any main obstacles.
Each VMO2 and Daisy have been contacted for remark.
