Virgin Media O2 Business and Daisy Group have announced a strategic merger to change the business telecommunications in the UK. The partnership seeks to develop a dominant player on the B2B telecom front with the powers pooled to deliver improved services to the firms within the country.
What Does This Merger Mean?
Virgin Media O2 Business, a joint venture between Liberty Global and Telefónica has settled to combine its enterprise part with Daisy Group, a prime B2B telecom service provider. According to the agreement, Virgin Media O2 will own a 70% stake in the new entity; Daisy Group, on the hand will own the remaining 30%. It is expected that this merger will account to about £1.4 billion revenues and £150 million in adjusted core earnings in 2024.
Why Is This Important?
The UK telecom industry is witnessing large scale changes, and big names such as BT and Vodafone are putting their house in order. This merger places the new entity as a vigorous competitor that will be providing innovative solutions and superior services to businesses. The synergies of Virgin Media O2 and Daisy Group are expected to support and increase the satisfaction of the customer in B2B sector.
Who Is Virgin Media O2 and Daisy Group?
Virgin Media O2
Virgin Media O2 is a giant of telecoms in the United Kingdom, providing all manner of services, such as broadband, mobile and fixed-line solutions. Created in 2021 as a joint venture of Liberty Global and Telefónica, Virgin Media O2 has always been an innovator in digital, offering high-speed connectivity and modern technologies for both businesses and consumers.
Daisy Group
Daisy Group is one of the biggest providers of B2B telecom services that are independent and operate in IT, communications and cloud services in the United Kingdom. Founded in the year 2001, Daisy Group has expanded via strategic acquisitions as well as partnerships to bring a comprehensive set of services to businesses of all sizes.
What is the New Entity Going to give?
The merger seeks to provide a full spectrum of the services to businesses, namely:
- Unified Communications: Bringing together voice, video, and messaging as a way of promoting collaboration.
- Cloud Solutions: Offering scalable and secure cloud services that would support business operations.
- Managed IT Services: Provision of proactive management and support for IT infrastructure.
- Connectivity Solutions: Provision of reliable and fast internet and mobile services.
With a combination of strengths, Virgin Media O2 and Daisy Group hope to provide unique and customized solutions for the changing needs of the UK businesses.
What Happens Next?
Closing of the merger is projected in second half of 2025. Post completion, Jo Bertram from Virgin Media O2 will act as the CEO of the new company while Matthew Riley who is the founder of Daisy Group will take up the position of the Chairman. The combined body is projected to save £70 million every year by end of the decade although with minor redundancies.
Conclusion
The merger of Virgin Media O2 Business and Daisy Group is one milestone in the British B2B telecommunications market. Through collaboration, the two companies are planning to come up with a powerhouse that will be at the fore-front of driving innovation and promoting improved services to businesses throughout the country. With the telecom industry ever-changing, this strategic partnership places the new partnership in a good place to be the driver of business communications in the UK.