Lancashire's Daisy Group accepts £494 million takeover bid

Lancashire-based telecommunications company Daisy Group has agreed a £494 million takeover deal by a consortium led by chief executive Matthew Riley.

The consortium, which includes Toscafund Asset Management and Penta Capital - has agreed a 185p per share offer for Daisy.

The recommended offer represents a premium of approximately 16.4 per cent to the closing price on 25 July, the last business day prior to the consortium’s approach.

In addition, the Offer implies an enterprise value multiple of approximately 11.0 times Daisy’s Adjusted EBITDA of £57.9 million for the 12 months ended 31 March 2014.

It also implies an equity value multiple of approximately 13.4 times Daisy’s Adjusted EPS of 13.85 pence for the 12 months ended 31 March 2014.

Daisy’s Chief executive Matthew Riley, who owns 61,431,110 Daisy Shares and has an interest under the Daisy Share Schemes in an additional 2,500,000 Daisy Shares, said: “The Company has enjoyed loyal support from its shareholders over the five years it has been quoted on AIM. “The Offer provides Daisy Shareholders with a cash premium today and represents a positive development for our 59,000 customers and continuity for our 1,500 employees; it also positions the Company for its next phase of growth in the UK telecoms and IT sector, with the backing and strategic and financial guidance of Toscafund and Penta.”