Virgin Media O2 and Daisy Form US$1.8bn B2B Tech Venture
Virgin Media O2 and Daisy Group have confirmed plans to combine their direct B2B operations, forming a new entity to become one of the UK’s most powerful communications and IT providers. With pro forma annual revenues of approximately US$1.8bn, the new company will deliver unified digital-first services for organisations ranging from SMEs to large enterprises and public sector bodies.
Set to be majority owned by Virgin Media O2 (70%) with Daisy Group holding a 30% stake, the joint venture will consolidate strengths from both firms, aligning advanced infrastructure, deep sector expertise and scalable platforms.
Jo Bertram, Managing Director of Virgin Media O2 Business, will lead the entity as Chief Executive Officer, alongside Daisy Group founder Matthew Riley, who takes on the role of Chairman. Together, they bring decades of leadership in telecoms and IT.
Comprehensive solutions, powered by next-gen infrastructure
Combining Virgin Media O2’s scale and assets with Daisy Group’s agile IT systems and customer-focused services, the new entity will offer a unified suite of digital communications tools under one umbrella. These include managed IT services, cloud-based collaboration tools, IoT connectivity, 5G private networks, cybersecurity solutions and AI-powered offerings such as O2 Motion.
It will benefit from fixed and mobile wholesale agreements with Virgin Media O2 and access to Liberty Global and Telefónica products and services.
Lutz Schüler, CEO of Virgin Media O, stated, “Combining Virgin Media O2 Business with Daisy Group is the perfect pairing and creates a new British business connectivity powerhouse and greater competition in the market.
“For us, it’s a big step forward in our journey to boost B2B growth and provide UK businesses of all sizes with the best digital and connectivity offerings.”
Driving growth through operational synergies
The deal is forecast to deliver around US$791m in operational synergies on a net present value basis, including integration costs. The amount includes a pre-tax annual run rate of approximately US$92m by 2030, with more than half of these benefits expected to come to fruition within three years of the transaction closing.
The gains will be achieved through reduced cost duplication, leveraging Virgin Media O2’s networks, integrating IT systems and driving new cross-sell and upsell opportunities across the combined customer base.
Matthew Riley, Chairman of the Daisy Group, commented: “This transformational transaction will revolutionise the telecommunications and IT landscape and create the most comprehensive offering for businesses of all sizes across the UK. Our new entity… will deliver a comprehensive solution for the fast-changing needs of UK organisations supported by specialist teams that have a relentless focus on customer service.”
Supporting the UK’s digital ambitions
The creation of the new B2B entity aligns with broader national goals to accelerate digital infrastructure, support economic productivity and drive innovation across industries. With the ability to offer scalable, high-performance communications and IT services across the country, the venture is well-positioned to serve both emerging and legacy business needs.
As Matthew noted: “Growth is top of the political and business agenda – inextricably linked to this is access to world-class IT and communications infrastructure that is integrated and can scale.”
The transaction is expected to close in early H2 2025, subject to regulatory approvals. Virgin Media O2 and Daisy Group have signalled their readiness to enter a new growth phase. While the companies will initially continue to operate under their individual brand, the newly formed organisation will ultimately act as a one-stop shop for business connectivity and IT services across the UK.
For the telecoms sector, this merger marks a significant moment in the evolution of B2B services. It combines infrastructure strength with IT agility to meet changing customer demands and lays the groundwork for sustainable, tech-driven growth.
The combined entity expects to drive profitability, improve efficiency and deliver measurable value to its customers, shareholders and the broader UK digital ecosystem.
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