SCOTT RUSSELL & CO, LTD

NEG – Provision of mission critical telephony services for over 2000 corporate, government and NHS organisations processing in excess of 60 million telephone calls per annum has today (2nd December 2010 has) been bought by Daisy Group Plc DAY.L 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.