SCOTT RUSSELL & CO, LTD

On the 2nd December 2010 Daisy Group Plc DAY.L purchased NEG for an initial cash consideration of £23.3 Million. Scott Russell & Co Ltd was a substantial stakeholder in NEG and provided sales management consulting services to the group

Daisy CEO Matthew Riley said: ‘The acquisition of NEG is a continuation of our stated consolidation drive in the fragmented reseller market. NEG has a proven track record for organic growth, further potential to grow, and provides the Group with a strong footprint in a market in which we believe we can increase market share further.

NEG’s management accounts for the 10 months ended 31 October 2010 reported EBITDA of £3.4m year to date (FY 2009: £2.9m) and revenues of £11.2m. The company has an average remaining contract length of three years, a quality earnings stream and gross assets of £7.4m.

Corporate advisors BCMS

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