Merger Announcement

Virgin Media O2 and Daisy Group are set to present a merger of their business communication and IT operations, creating a £3 billion telecommunications powerhouse.

Details of the Merger

The two companies will announce on Monday that they will combine to form a company with annual revenue of around £1.4 billion. Virgin Media O2 will have 70% of the new business, while Daisy Group will have 30%. This merger will create a stronger challenger to the BT Group, the largest IT provider and telecommunications services provider for small and medium-sized companies (SMEs) in the UK.

New Business Operations

The new VMO2 DAISY business will have around 700,000 customers and be valued between £2.5 billion and £3 billion, including debts. The combination of the two operations is expected to achieve significant cost savings.

Leadership and Expectations

Matthew Riley, the founder of Daisy Group, will be the managing director of the new business. This is the latest in a series of deals developed by Mr. Riley since Daisy was founded in 2001. The merger is likely to face strict examination by the competition and marketing authority, but it is not expected to encounter significant obstacles.

Reaction and Next Steps

Both VMO2 and Daisy were contacted for a comment on the merger announcement. The deal is expected to have a significant impact on the telecommunications industry, and further details will be announced in due course.