Virgin Media O2 and Daisy Group set up new £3bn company to “revoutionise” the UK business telecoms market

Virgin Media O2 and Daisy Group are merging their business units, creating a £3 billion entity aimed at challenging BT Group in the business telecoms market.

The combined operation will serve around 700,000 business customers across the UK.

The deal structure includes a £425 million inter-company loan from Virgin Media O2 and approximately £835 million in Daisy Group debt. Virgin Media O2 also plans to secure additional financing to repay Daisy’s existing liabilities. 

Subject to regulatory approvals, the new company will be majority-owned by Virgin Media O2, holding a 70 per cent stake. Leadership will be shared, with Daisy Group founder Matthew Riley appointed chairman and Virgin Media O2 Business Managing Director Jo Bertram taking on the role of CEO.

Transformational

 Riley called the deal a “transformational transaction” and a major milestone for Daisy Group, which he founded in 2001.

“This merger will revolutionise the telecommunications and IT landscape in the UK,” Riley said. “We’re bringing together two highly successful companies to deliver world-class integrated services that scale with the needs of modern businesses.”

The merger combines nearly all of Virgin Media O2 Business and Daisy Group operations, aiming to drive growth through increased scale, operational efficiencies, and a broader portfolio of services.

Existing brands kept

Both companies will initially continue to operate under their existing brands and from their current office locations.

The merged entity will serve a wide range of UK organisations—from SMEs and large corporates to public sector bodies and indirect channel partners. It will leverage Virgin Media O2’s next-generation fibre and mobile networks alongside Daisy’s IT service platforms and customer support infrastructure to deliver comprehensive, digital-first solutions.

These offerings will include cloud-based communications tools, 5G private networks, IoT connectivity, cybersecurity services, and AI-powered products such as O2 Motion — all delivered through a single provider.

Lutz Schüler, CEO of Virgin Media O2, described the merger as a “perfect pairing” and a strategic move to “create a new British business connectivity powerhouse” while boosting market competition.

“This is a big step in our B2B growth journey,” Schüler said. “We’re combining infrastructure, talent, and product innovation to create a one-stop shop for UK business customers.”

Founded in 2001 by Matthew Riley, Daisy Group has expanded through a mix of organic growth and strategic acquisitions to become one of the UK’s largest independent telecoms providers Daisy Communications** focuses on small and medium-sized enterprises, offering business broadband, VoIP, telephone systems, and IT solutions. Daisy Corporate Services** serves larger organisations with a full range of IT and communications services, including cloud solutions and managed IT support.

The company employs approximately 1,200 people across six continents, underlining its global reach and dedication to delivering integrated telecom and IT solutions.