Virgin Media O2 and Daisy Group join forces to reshape telecoms market

In the United Kingdom, Virgin Media O2 announced a strategic move to combine its enterprise unit with Daisy Group, a business-to-business telecoms provider. This announcement was made on Monday, May 12, 2025, as both companies aim to enhance their offerings in the communications and IT sector for businesses. The new entity created through this collaboration will be structured as a joint venture, with Virgin Media O2 owning a 70% stake, while Daisy Group will hold the remaining 30%. This merger is projected to generate pro-forma revenue of approximately 1.4 billion pounds, which is equivalent to about 1.85 billion dollars, along with an expected adjusted core earnings of around 150 million pounds, based on anticipated performance in 2024. The rationale behind this merger is to create a more competitive communications and IT solution for companies, as both organizations bring complementary strengths to the table. Virgin Media O2, formed through the partnership of Liberty Global and Telefonica, possesses a strong market presence and infrastructure that can support a wide range of business services. On the other hand, Daisy Group's specialization in business telecoms provides a solid foundation for enterprise communications, making this merger a strategic fit. Moreover, consolidating their resources is expected to streamline operations and enhance service delivery for their clients. By joining forces, the new entity is likely to benefit from economies of scale, which may lead to more innovative offerings and improved customer satisfaction. This venture represents a significant shift in the UK telecoms landscape, with increased competition likely benefiting consumers and businesses alike. As part of a rapidly evolving industry, there is a clear trend towards consolidation among telecommunications providers. This deal aligns with broader market movements where larger firms are seeking to expand their capabilities through partnerships and mergers. Companies that can adapt to these changes will likely find themselves in a stronger position to compete in an increasingly digital economy. This collaboration not only signifies the commitment of both companies to enhance their service portfolio but also underscores their awareness of current market dynamics and customer needs.