Daisy Group plc Acquisition of Worldwide Group Holdings Limited
Daisy Group plc (AIM: DAY), a leading provider of business communications, announces that is has today entered into an agreement to acquire the audio-conferencing specialist Worldwide Group Holdings Limited ('Worldwide') for an initial cash consideration of £28m. Further consideration may become payable based on growth in EBITDA over an agreed earn-out period.
Daisy has conditionally agreed to acquire Worldwide, which is a market-leader in audio-conferencing and call-handling technology, providing a full suite of communications solutions to business customers, with a focus on voice services and data connectivity. Based in Peterborough, the business supplies services to a number of the world's largest audio-conferencing companies and, though UK-based, routes inbound calls from multiple foreign territories.
Complementing the existing Daisy Group portfolio, Worldwide provides communications products including lines, calls, data connectivity, inbound-telephony, international toll-free services, maintenance services and disaster recovery.
In the 12 month period ending 31 December 2011, the unaudited adjusted management accounts of Worldwide included revenues and EBITDA of £36.4m and £4.0m respectively.
The acquisition will be funded from an increase in existing borrowing facilities together with the addition of Royal Bank of Scotland to the existing four strong group of lenders.
With specialist product knowledge and expertise, Worldwide's existing senior management team will remain in place to lead the business.
Matthew Riley, Chief Executive Officer of Daisy Group plc, said:
"Worldwide represents a strong strategic fit and clear growth opportunity for the Group. Its audio-conferencing solution creates a new revenue stream for Daisy, whilst driving further cross selling opportunities into our existing customer base and providing Worldwide's customers with access to the Group's full portfolio.
Worldwide has demonstrated strong growth through its audio-conferencing technology in recent years. With many organisations now looking to reduce costs associated with business travel, we believe the audio-conferencing industry is an area capable of delivering sustained growth and we are excited to introduce this product into our customer base."