Telecommunications firm Daisy Group is to acquire the telecommunications division of Redstone for £17m in cash.
Daisy, which reversed into the AIM-listed Freedom4 Group (formerly Pipex), in June, is pursuing an aggressive consolidation of the fragmented telecoms reseller market.
The latest deal follows the recent acquisitions of telecoms and IT supplier Eurotel and UK-based information and communications technology firm AT Communications.
Daisy, led by Growing Business Young Gun Matthew Riley, conditionally agreed to acquire Redstone Telecom, which comprises the assets of Redstone PLC's fixed line business and also its subsidiary Symphony Holdings Ltd, which consists of a mobile service provider and distribution business.
The division offers fixed line and mobile telephony services, distribution services and hardware sale and maintenance. Its turnover for its last financial year was £74.7m.
Riley, Daisy’s chief executive, said: “Last month’s flotation provided us with the capital to be fleet of foot and react to any deals that we felt fitted in with the future strategy of the business."
“Our acquisition of Redstone's telecoms division further strengthens our position in the reseller market. This transaction is another step towards the group consolidating this fragmented sector and we will continue to pursue this strategy, building on our proposition of providing a truly converged product set to the SME and mid-market business customer," he added.
The deal is expected to be completed on August 28.
© Crimson Business Ltd. 2009