- The merger Virgin Media O2 and Daisy of 3 billion pounds sterling could shake the British high speed market market
- The new telecommunications player promises a “one-stop shop” for businesses, but can it really deliver?
- Is the domination of BT under fire, but is this fusion of Virgin-Daisy sparkled or exploding?
Virgin Media O2 and Daisy Group have announced a strategic merger of their B2B operations, aimed at challenging BT long -standing domination over the British corporate communications market.
The new company, valued at around 3 billion pounds sterling, will combine the infrastructure capacities of Virgin Media O2 with the specialized IT services of Daisy Group, creating a communications and IT provider with an initial annual income base of around 1.4 billion pounds Sterling.
However, the financial structure of the merger is complex. An intersocated loan of 425 million pounds sterling will come from Virgin Media O2, while 835 million pounds sterling in Daisy Group debt must be authorized.
Although the agreement is ambitious, industry observers remain prudently optimistic about the challenges to come.
Daisy Group will hold a 30% stake, while Virgin Media O2 will keep a property at 70% of the new entity.
However, the questions remain on the effectiveness of two separate commercial models – connectivity focused on the Virgin scale and Daisy’s advisory IT services – can unify operations, systems and customer experience without friction.
Leadership will be conducted jointly by Matthew Riley, founder of Daisy Group, as president, and Jo Bertram by Virgin Media O2 Business as CEO.
The merged company intends to serve a wide range of customers, SMEs to large companies and public sector organizations, offering end -to -end services, including 5G private networks, IoT solutions, AI analyzes and cloud communications.
Despite access to the new generation fiber and mobile networks of Virgin, and “award -winning customer service” of Daisy, it is not difficult to know if the combined company can really offer a better experience in digital class and digital focused.
Lutz Schüler, CEO of Virgin Media O2, described the merger as “a new power of British commercial connectivity”, promising “a one -stop shop for all communications and needs”.
Although the message is daring, it remains to be seen if the company can match the rooted presence of BT and navigate in the logistical challenges of the merger of product portfolios and support operations.
On the side of Daisy, Matthew Riley described the merger of “transformational transaction” and “the most complete offer for companies of all sizes”, positioning it as essential to provide integrated and scalable computer tools in a rapid digital landscape.
The two companies speak hard, which is laudable, but the expression “complete offer” is often overused in B2B marketing and the success of the real world will ultimately depend on the way in which integration efforts are performed.
To close at the beginning of H2 2025, pending regulatory approvals, the new entity should unlock 600 million pounds sterling of operational synergies over time.
