Telecoms group Daisy has reached an agreement to buy Phoenix IT in a deal worth around £135m.
News emerged last week that Phoenix had entered talks with the acquisition hungry Daisy, sending shares surging. The deal is for 160 pence per share, a 24% premium on the closing price prior to the news breaking.
"Our three-phase plan for Phoenix has the potential to deliver long term value to shareholders, but as with any plan it is not without risk,” said Phoenix IT chief executive Steve Vaughan. “The Phoenix Board believes that the premium implied by this offer, in cash, is a fair recognition of the potential upside in the plan, tempered by the inevitable execution uncertainty.
“We have worked hard to bring financial stability and strategic clarity to our group. Today's offer serves as clear recognition of those efforts and their success."
Phoenix has had its fair share of troubles in recent months, with sales falling and Cisco cutting it from its Gold Partner programme.
Daisy was recently taken private in and MBO by former-CEO Matthew Riley and investors Toscafund and Penta Capital.
Commenting on the offer, Riley, who is now executive chairman, said: "This announcement builds upon the corporate acquisition strategy that Daisy has successfully executed, and continues to follow, in order to offer a diverse product portfolio as a leading UK supplier of unified business communications solutions to SMEs and mid-market businesses.”
"The addition of Phoenix's strengths in IT services and solutions, particularly its managed services and rapidly expanding cloud services, will further strengthen Daisy's existing portfolio of products and services that represent the converging world of traditional telecoms and IT.”