Daisy founder Riley acquires cloud firm 4Com for £215 million

Matthew Riley, the telecoms entrepreneur behind Daisy Group, is making headlines once again with his latest acquisition. Sky News has learned that Riley has orchestrated a £215m deal to acquire 4Com, a provider of cloud communication services to over 17,000 corporate customers.

City sources reveal that the deal is set to be finalized in the coming days, with 4Com founder Daron Hutt expected to receive a windfall of over £100m. The strategic move by Daisy to acquire 4Com is driven by the appeal of its cloud communication product, HiHi, which has gained traction through a recent television advertising campaign.

This acquisition will not only expand Daisy’s product offerings to the SME market but also significantly boost its customer base. With the addition of 4Com, Daisy’s SMB customer base will exceed 200,000 clients, generating revenues of over £400m from this segment alone.

Matthew Riley’s track record of successful acquisitions, including the £210m purchase of XLN Telecom in 2022, has solidified Daisy’s position as a key player in the UK’s SME telecoms market, second only to BT Group. The deal with 4Com marks another milestone in Riley’s growth strategy for Daisy, which was taken private in 2014 with the support of Toscafund Asset Management.

Houlihan Lokey, the investment bank, is reportedly advising on the deal, while Daisy has chosen to remain tight-lipped about the acquisition. With this latest move, Matthew Riley continues to make waves in the telecoms industry, cementing his reputation as a savvy dealmaker.