Virgin Media O2 and Daisy Group set to merge B2B operations

Virgin Media O2 and Daisy Group are set to merge their B2B operations in a significant move within the UK’s communications and IT sector. The new company, which will combine nearly all of Virgin Media O2 Business and Daisy Group’s operations, is expected to generate annual revenues of around £1.4bn. Virgin Media O2 will hold a majority stake, while Daisy Group retains 30%.

The new entity will be chaired by Daisy’s founder Matthew Riley, with Jo Bertram of Virgin Media O2 Business taking the role of CEO. Initially, both companies will continue to operate under their current brand identities and from their existing locations. The combined firm will cater to a broad spectrum of UK businesses, from small firms to large enterprises and public sector bodies.  

Daisy Group, founded in 2001 by Riley, has grown into one of the UK’s largest independent communications companies. It has built a strong presence through organic expansion and multiple acquisitions, providing cloud, IT and telecoms services. The move follows a merger in 2024 with Wavenet, a company primarily owned by Australian financial giant Macquarie, which separated Daisy Corporate Services from the group and integrated it into Wavenet (See - Wavenet and Daisy Corporate Services to merge).

The combined VMO2 and Daisy Group business is projected to deliver operational synergies valued at £600m, largely through cost reductions, IT system integration, and efficiencies from Virgin Media O2’s fibre and mobile networks. While the deal promises new service offerings including IoT, private 5G networks, and AI-driven tools like O2 Motion, consolidation often comes with the risk of job redundancies due to overlapping roles and infrastructure.

Posted by: Simon Baxter at 08:58

Tags: telco