UK B2B telco Daisy has made yet another acquisition, this time buying MurphX Innovative Solutions, a UK data connectivity and hosted solutions group, for £4.8m. The cash consideration does not include a three-year earn-out based on EBITDA…
UK B2B telco Daisy has made yet another acquisition, this time buying MurphX Innovative Solutions, a UK data connectivity and hosted solutions group, for £4.8m. The cash consideration does not include a three-year earn-out based on EBITDA growth.
Announcing the deal, Daisy described MurphX as providing business broadband, virtual private networks, leased line and ethernet connectivity, co-location, IP transit and application services including SaaS. It sells to ISPs, telecoms resellers and IT services organisations, who themselves resell to SME and mid-market business customers.
MurphX provides the operational infrastructure that allows business customers to utilise convergent technologies such as voice over IP and video conferencing, which will “significantly enhance” Daisy’s existing data solutions offering.
MurphX management will remain at the company, leading integration and working to drive turnover and profit growth in the combined entity.
Founded in 2001, MurphX boasts partnerships with BT, C&W, Opal and Virgin Media.
According to the company’s unaudited management accounts, MurphX achieved revenue, gross profit and EBITDA of £4.8m, £1.3m and £0.5m respectively for the five months ending 30 April 2010.
Daisy CEO Matthew Riley welcomed the deal, describing MurphX as a “dynamic, fast-growing data company” that would enhance Daisy’s existing data portfolio and unified communications offering to the SME and mid-market.
He added that the purchase represented “another step towards us consolidating this fragmented marketplace”. The company forecasted that revenue from data solutions would increase by over 30%.
Separately, Daisy released its audited preliminary results for the 15-month period to 31 March 2010. During the period, it achieved revenue of £134.4m, an adjusted Ebitda of £11m and underlying operating cash flow of £8.2m.
Riley commented that the results supported the company’s acquisitive strategy. “We have integrated acquired businesses on schedule, providing significant cost savings which will be reflected in our results for the year to 31 March 2011”. Furthermore, the group’s recent £75m revolving credit facility – provided by Lloyds TSB, HSBC and Yorkshire Bank – provides the group with the capability to pursue further acquisitions, he said.
