Private equity firm Inflexion has agreed to make a significant minority investment in Digital Wholesale Solutions (DWS), an IT, communications and cloud wholesale platform that is currently part of Nelson, Lancashire-based Daisy Group.
The investment comes ahead of a potential float of Digital Wholesale Solutions.
“The investment is being made by Inflexion’s dedicated minority investment fund, Partnership Capital II,” said Inflexion.
“As part of the transaction, DWS will be demerged from Daisy Group with the majority of the shareholders of Daisy Group reinvesting directly into DWS.
“The transaction values DWS at an enterprise valuation of £1 billion.”
DWS is a software platform business providing IT, communications and cloud products and services on a wholesale basis to over 6,000 UK clients including Vodafone, O2, BT/EE, Microsoft and Virgin Media Business.
Its services are targeted at resellers serving small and medium sized enterprise in the 10-250 employee range.
“As an independent entity DWS can further pursue its strategy of being the partner of choice across the industry, providing an integrated platform for resellers to provide the very best solutions to their customers,” said Inflexion.
“This is becoming increasingly important as market disruptions such as the move to cloud, 5G, fibre to the premises and the ‘work from anywhere’ trend drive SMEs to invest in digital technology.”
Daisy Group chairman Matthew Riley said: “Since setting up Daisy in 2001, the group has gone from strength to strength, adapting and seizing opportunities brought about by evolving technology and regulation.
“I believe that now is the right time for DWS to become an independent company and I look forward to partnering with Inflexion as DWS continues to grow and develop.”
Inflexion managing partner Simon Turner said: “The business Matthew and his team have built up is testament to what the hard work of an ambitious entrepreneur can achieve.
“DWS is exceptionally well placed to continue its organic and acquisitive growth as it builds its market position further.
“We look forward to partnering with Matthew and his team as they continue on their impressive journey.”