British alternative telco Daisy Group has announced that it has agreed to purchase broadband service provider MurphX Innovative Solutions for an initial cash payment of GBP4.8 million (USD7.1 million), Reuters reports. Commenting on its acquisition strategy Daisy noted: ‘The market environment remains difficult for smaller, sub-scale, operators and this will provide further acquisition opportunities for the group during the current financial year.’
Alongside the announcement of this latest in a long line of purchases, Daisy revealed that for the 15 months ended 31 March 2010 it had posted a pre-tax loss of GBP16.2 million on revenues of GBP134.4 million. The telco has also recently secured a GBP75 million banking facility however that it claims will support its acquisition strategy moving forward, with the funding also providing working capital.
According to TeleGeography’s GlobalComms Database, Daisy Group was formed in July 2009 when the Freedom4 Group revealed plans for a reverse takeover involving two small British telecoms companies. Freedom4 conditionally agreed to acquire Daisy Communications, an SME value added reseller, as well as the assets of Vialtus, a mid-market managed solutions provider. The enlarged unit was renamed as Daisy Group and listed on the Alternative Investment Market (AIM) in July 2009.