UK operator VMO2 struck a deal with Daisy Group to create a £3 billion entity focused on business communications and IT operations, a move which ramps competition with BT Group.
In an announcement, VMO2 stated it would take a 70 per cent stake in the new business and Daisy the remaining 30 per cent.
The transaction will be structured by the contribution of approximately £425 million through an inter-company loan by VMO2 and £835 million of debt by Daisy.
Based on full-year 2024 performance, the combined entity would have annual revenue of £1.4 billion and will deliver operational synergies of £600 million, mainly through cost savings.
VMO2 stated it will bring its fibre and mobile infrastructure to the table, combined with Daisy’s end-to-end IT and sales management platforms.
The entity will launch cloud-based communication tools, private 5G networks, IoT connectivity, security solutions and AI products.
It is to take the fight to BT Business, currently the largest provider of IT connectivity services for enterprises in the UK.
Revolution
Daisy founder Matthew Riley will chair the new company and VMO2 Business MD Jo Bertram was named CEO.
VMO2 CEO Lutz Schuler said the combination creates a business connectivity powerhouse and Riley predicted it would “revolutionise the telecommunications and IT landscape”.
The deal is expected to close in the second half of 2025, subject to customary closing conditions.