Daisy Group takes control of 2e2's datacentre operations

Daisy Group has entered an agreement to acquire and manage 2e2's datacentre business unit

Telecommunications service provider Daisy Group has entered an agreement to manage the 2e2 datacentre business unit.

Daisy will buy the business and assets of 2e2's datacentre division, which became available after 2e2 Group went into administration in January.

The acquisition will not only boost Daisy’s existing datacentre and IT hosting service portfolio, but will also bring stability to the ailing 2e2 datacentre business and reassure its customers, which include NHS trusts, according to the telco.  

2e2 called in the administrators on 28 January 2013. The administrators, FTI Consulting, demanded nearly £1m in funding from customers if they wanted uninterrupted services and access to their data and datacentre facilities.

The contract will provide 2e2 customers with the opportunity to work with “a long-term partner in the growing data and hosting market”, said Daisy chief executive Matthew Riley.

The move comes after Daisy’s owners and Oakley Capital Private Equity LP created a special-purpose vehicle called Daisy Data Centre Solutions to acquire 2e2’s IT assets.

Under the contract, Daisy will work with existing 2e2 datacentre employees to provide data and hosting services from 2e2's datacentres in Gateshead and Reading. Combined with its own IT infrastructure, the additional capacity will enable Daisy to double its datacentre power from 2MW to 4MW.

“Through the additional datacentre facilities Daisy is in a position to expand its data and hosting footprint, provide stability to existing 2e2 customers and offer additional resources to its own customers,” said Riley.

2e2’s datacentre business is the defunct group’s second division to be sold by administrators FTI Consulting, after O2 acquired 2e2's managed services business in a move that promised to save 107 jobs.

Previously, O2 provided the managed services as part of its O2 Unify joint venture with 2e2. The telco said it will back up all of the customer services previously offered by 2e2 with its own network and service infrastructure.

Despite rescue efforts, most of 2e2’s divisions were closed, with just its managed services and datacentre businesses offered for sale.

Image: Thinkstock

Read more on Datacentre systems management