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Virgin Media O2 and Daisy Group Announce Merger to Form £3 Billion Telecoms Venture

The joint venture, pending regulatory approval, aims to challenge BT Group's dominance in the UK business telecoms market.

A billboard advertising Virgin media fibre broadband is seen in London, Britain, March 30, 2016. REUTERS/Toby Melville/File Photo
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The deal in which the operator of O2 and Virgin Media will merge its enterprise operations with a rival is expected to close in the second half of the year
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Overview

  • Virgin Media O2 and Daisy Group are merging their business communications and IT operations into a single entity with pro forma revenues of £1.4 billion.
  • The new company will serve approximately 700,000 customers and is valued at between £2.5 billion and £3 billion, including debt.
  • Ownership of the joint venture will be split 70/30, with Virgin Media O2 holding the majority stake and Daisy Group the remainder.
  • Matthew Riley, founder of Daisy Group, will chair the new entity, while Jo Bertram, managing director of Virgin Media O2 Business, will serve as chief executive.
  • The merger is under review by the UK's Competition and Markets Authority, with limited regulatory challenges anticipated and completion targeted for the first half of 2025.