Virgin Media O2 Forms New B2B Giant with Daisy Group
Deal News | May 14, 2025 | Ropes & Gray
Ropes & Gray has provided legal advisory services to Virgin Media O2 in their debt financing arrangements for the formation of a new Business-to-Business (B2B) company through the merger with Daisy Group. This strategic combination will result in a 70-30 ownership structure, favoring Virgin Media O2. The deal aims to build a powerful new entity in the UK's B2B communications and IT sectors, combining Virgin Media O2’s advanced infrastructure with Daisy Group’s innovative IT solutions. The merger will involve 1.25 billion pounds in loan financing, facilitating the repayment of Daisy Group's existing debts and providing additional secured funds to support the merger's completion.
Sectors
- Telecommunications
- Information Technology
- Corporate Finance
- Legal Services
Geography
- United Kingdom – The merger aims to enhance business communications and IT services within the UK market.
Industry
- Telecommunications – The article discusses a merger between two companies in the communications and IT sector, specifically focusing on B2B operations.
- Information Technology – The merger aims to strengthen IT services, reflecting the significance of IT operations in the business combination.
- Corporate Finance – The article involves debt financing and structuring services in the merger, highlighting the role of corporate finance.
- Legal Services – Ropes & Gray provided legal advisory services for the debt financing and structuring of the merger agreement.
Financials
- £1.25 billion – The amount of loan financing structured for the merger to handle existing debts and support the transaction mechanics.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Virgin Media O2 | Bidding Company | Company | Virgin Media O2 is leading the B2B combination and will hold a 70% ownership in the new entity. |
| Daisy Group | Target Company | Company | Daisy Group is merging its B2B operations with Virgin Media O2 and will hold a 30% stake in the new entity. |
| Ropes & Gray | Legal Advisor | Company | Provided legal advisory services for the debt financing and structuring of the merger. |