Daisy Group acquires BNS Telecom for £10.45m

Voice and data service provider Daisy Communications is forking out £10.45m for BNS Telecom, its second acquisition this month.

Voice and data service provider Daisy Communications is forking out £10.45m for BNS Telecom, its second acquisition this month.

The offer of 20 pence per share, which represents a premium of roughly 220% on the price that BNS stock last traded at before it delisted from AIM on 3 June 2009, had been agreed by its directors.

"This offer makes great sense for Daisy, given the scale and position of BNS within the UK SME market," said Matthew Riley, Daisy CEO.

BNS, a voice over IP telecoms carrier, and reseller of fixed and mobile lines, minutes, data, hardware and services is based in Northumberland and was formed in 1996.

To date, Daisy Group has acquired Daisy Communications, Vialtus Solutions, Freedom4, Redstone Telecom, AT Communications and Eurotel and most recently bought Managed Communications.

Riley said the BNS acquisition "is another step towards the Daisy Group consolidating this fragmented sector."

Directors at BNS decided that its market cap on AIM did not reflect its true value and ceased trading on the exchange last summer.

Shortly after, founder and chief exec Gary Moat, who owned 48.6% of the firm, expressed plans to sell his shareholding and the executive team decided to approach potential suitors to offload the entire operation.

Results for the 12 months to 31 July 2009 indicate the progress BNS has made with sales up 13% to £36.9m and EBITDA rising from £130,000 a year earlier to £3.2m.

Barry Moat, BNS non-executive chairman, said the 20 pence offer gave investors a healthy premium on the last share price, adding there was no guarantee they could get a better return in the "short to medium term".



Find more MicroScope+ content and other member only offers, here.

Read more on Network Infrastructure Solutions and Services

Start the conversation

Send me notifications when other members comment.

By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy

Please create a username to comment.



  • CIO Trends #6: Nordics

    In this e-guide, read how the High North and Baltic Sea collaboration is about to undergo a serious and redefining makeover to ...

  • CIO Trends #6: Middle East

    In this e-guide we look at the role of information technology as the Arabian Gulf commits billions of dollars to building more ...

  • CIO Trends #6: Benelux

    In this e-guide, read about the Netherlands' coalition government's four year plan which includes the term 'cyber' no fewer than ...