Daisy Group plc Acquires of Indecs
Daisy Group plc (AIM: DAY), a leading provider of business communication and IT services, announces that it has acquired Indecs Computer Services Limited and Indecs Computers Limited (together, 'Indecs') for a cash consideration of up to £18m.
Indecs is a market leading provider of technical maintenance and support services for business critical, IT server and cloud storage facilities. The business specialises in tailoring maintenance contracts to individual customers' needs and supporting legacy hardware systems. Head-quartered in Redditch, the business supplies services to a diverse customer base, from leading blue chip household names and public authorities to SMEs across the UK.
Complementing the existing professional services businesses within the Daisy Group portfolio, Indecs provides expert support across a wide range of leading manufacturer brands generating maintenance revenues in addition to revenues from hardware sales, consultancy services and time and materials services outside of a client's main service agreement.
In the 12 month period ended 30 June 2013, the combined unaudited management accounts of Indecs included revenues and EBITDA of £10.6m and £2.6m, respectively. Approximately 80% of the revenues related to recurring maintenance revenues with strong free cash generation.
Indecs is expected to have in excess of£1.0m of net cash at completion and the balance of consideration will be funded from the Group's existing borrowing facilities.
Matthew Riley, Chief Executive Officer of Daisy Group plc, said:
"Indecs represents a strong strategic fit and clear growth opportunity for the Group. Its multi-vendor specialist maintenance and support services further expand Daisy's IT services offering and give the Group the ability to support businesses on legacy IT systems as well as those investing in cloud solutions and cloud based data storage. I believe this exciting expansion of our Group's service offering, together with the cross selling opportunities for both Indecs and our existing customer base, enhance the Group's ability to deliver sustained growth."