Daisy Group completes acquisition of Phoenix IT Group

Daisy Group has completed the acquisition of Phoenix IT Group (“Phoenix”), a leading provider of Business Continuity, IT infrastructure managed services and Partner Services.

As a well-known brand with a strong heritage, Phoenix brings new capabilities and scale to the Daisy Group. Phoenix will strategically complement Daisy’s own growing Corporate and Partner businesses, serving the Group’s mid-market customer base with a broader portfolio and enhancing its offering to system integrator partners. Underpinning this will be Phoenix’s significant expertise in Business Continuity and IT Service Continuity Management as well as substantial scale in key market growth areas in hybrid cloud and field services.

The complementary product sets provide clear cross-selling opportunities and significant economies of scale, enabling Daisy to provide both its existing customers and the customers of Phoenix with access to additional market-leading services.

Daisy Partner Services
Daisy’s existing Partner Services division helps Systems Integrators, Telcos and BPOs (Business Process Outsourcers) to provide complete outsourcing solutions, by delivering expertise in areas that these companies consider non-core. The addition of Phoenix extends the scale and range of white label services in the Daisy portfolio, in particular in Desk-side and Retail support, such that the portfolio now spans the breadth of traditional and contemporary Unified Communications and IT Infrastructure. This will enable Daisy to add more value to its partners as they seek to offer more value to their customers and simplify and reduce the complexity in their supply chain.

Daisy Corporate Services
Mid-market businesses increasingly rely on their communications and IT systems, however with ever-present physical and cyber security threats and the complex nature of hybrid cloud environments (with applications on premise, in third party datacentres and in the public cloud) it can be difficult to strike the right balance between capability and risk, availability and cost. With the addition of the capabilities of Phoenix, Daisy Corporate Services will be able to offer end-to-end, assured and high availability Unified Communications and IT infrastructure managed services; a partner for mid-market businesses that is big enough to cope and small enough to care.

With the clear strategic fit, the team believes the acquisition creates the first scaled Unified Communications and IT Infrastructure Managed Services provider in the UK and provides Daisy with strong foundations for its intended growth trajectory to become a £1bn revenue organisation.

Matthew Riley, Daisy Group founder and Executive Chairman commented:

“Throughout our development it has been important that Daisy continues to evolve in line with market dynamics and alongside the specific needs of customers in a rapidly changing marketplace. The worlds of Unified Communications and IT Services are rapidly converging and our customers and partners are asking us to provide a broader range of services under one roof.

“As such, our ambition is to be the leading provider of unified business communications and IT infrastructure managed services and solutions via our SMB, Corporate and Partner Services businesses in the UK - a marketplace we believe to be worth over £10billion per annum.

“For the last decade we have been consolidating the fragmented market and the acquisition of Phoenix is evidence of Daisy’s intent to provide its customers and partners with a truly holistic, market leading service.”

Neil Muller, Daisy Group CEO commented:

“Through a combination of Daisy’s strength in networking and unified communications and Phoenix’s heritage in IT Services - including highly secure and available systems and data services - we believe the enlarged group will occupy a unique position in the market.

“As businesses become more digital, there is an ever-increasing reliance on the management and availability of customers’ business communications and IT Infrastructure. By combining capabilities, we are well positioned to offer true differentiation to our mid-market customers, providing them with a breadth of solutions and expertise, ensuring their critical systems are ‘always on’.

“Likewise, for our partners serving enterprise customers, our scaled partner services division will allow us to add value through both our enhanced expertise and engineering support, with a commitment that we will collaborate with our partners at all times.

“Over the coming weeks and months we will be combining the core strengths of both businesses, and we believe that the enlarged Group will become the ‘go to’ provider for end-to-end Unified Communications and IT Infrastructure Managed Services and solutions.”