Daisy Group has acquired the entire issued share capital of MurphX Innovative Solutions, a provider of data connectivity and hosted solutions, for an initial cash consideration of £4.8m. Further consideration will become payable based on growth in EBITDA over a three-year period.
MurphX provides a range of services to the channel including business broadband, virtual private networks, leased line and Ethernet connectivity, co-location, IP transit and application services, including SaaS. Its products are aimed at internet service providers (ISPs), telecoms resellers and IT services organisations, who resell to SME and mid-market business customers.
Operating as an “enabler”, MurphX provides the operational infrastructure that allows business customers to utilise convergent technologies such as voice over IP and video conferencing, significantly enhancing Daisy’s existing data solutions offering.
Following completion, the management team at MurphX will stay on and lead the integration of the business, with the aim of driving turnover and profit growth in the combined entity.
Based in Hampshire, MurphX has enjoyed rapid growth since its establishment in 2001. The business has strong partnerships with BT, C&W, Opal and Virgin Media and has 45,000 business broadband connections.
The unaudited management accounts of MurphX for the five months ending 30 April 2010 show revenues, gross profit and EBITDA of £4.8m, £1.3m and £0.5m respectively.
Matthew Riley, Chief Executive Officer of Daisy, said: “MurphX is a dynamic, fast-growing data company which we see as a great fit for the Group, enhancing our existing data portfolio and expanding our unified communications offering to the SME and mid-market.
This is a highly complementary business that strengthens our position in the data sales arena and is another step towards us consolidating this fragmented marketplace.”