Oakley Capital’s Daisy Group sells Digital Wholesale Solutions – Oakley Capital Investments says its Oakley Capital Fund II portfolio company, Daisy Group, has reached an agreement to sell its stake in its Digital Wholesale Solutions division. The transaction is subject to regulatory approval.
The trust’s share of proceeds will be about £22m, which represents about a 33% premium to the 30 June 2020 interim carrying value of Oakley Capital Investment’s stake in Daisy (via Fund II and a direct loan), an uplift of approximately 5 pence per share to the NAV.
Part of the proceeds will repay in full the £17m loan that the trust has made to the group.
OCI’s liquid resources available for future deployment (including this transaction) are estimated to be £240m.
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Fund II will retain a c.10% stake in Daisy following the sale.
Fund II invested in Daisy in July 2015 following the group’s acquisition of Phoenix IT Group to create the first converged IT and unified communications company in the UK small and medium businesses market. Oakley originally invested in the business via Oakley Capital Private Equity L.P. (“Fund I”) in 2008 and has maintained a close relationship with the founder, Matthew Riley, since the successful exit of Fund I’s investment in 2014.
Daisy is a leading provider of tailored IT, communications and cloud services to corporate customers of all sizes, and is organised into four main divisions based upon the size of the end customer: Small and medium sized businesses (customers with up to 250 employees), Digital Wholesale Solutions (customers with up to 250 employees), Daisy Corporate Services (customers with 250+ employees) and Allvotec (customers with 2000+ employees).
The sale of the DWS division to Inflexion, combined with the retained stake in Daisy, takes the gross return on investment to date to a 1.6x money multiple for Fund II. Completion is subject to regulatory approval.
OCI : Oakley Capital’s Daisy Group sells Digital Wholesale Solutions