Daisy
Isis Telecommunications Management Ltd and Flexphone Ltd




Hi Russell, Just a quick note to say thank you for all your great work on Outsourcery, many thanks Matt.


Russell Horton was engaged by Daisy Group plc. to support the financial and operational due diligence of a proposed strategic mobile business acquisition. The project required highly responsive, detailed analysis, challenge and insight of the presented data and of the impact and deliverability of transition service and contractual proposals to ensure that the Daisy Executive team was appropriately informed and advised to support its negotiation strategy with the vendor and with dependent mobile network service providers. Russell's contribution was a significant catalyst to the successful agreement and completion of this acquisition.


Daisy Group has acquired the Vodafone mobile service business of Outsourcery, a managed service provider, for a cash consideration of 12m. Outsourcery provides a suite of unified communications, focused on mobile voice, mobile data and hosted solutions to small and medium-sized enterprises.

Daisy Group has acquired 100% of the issued share capital of Hamsard 3155 Limited, the ultimate holding company of Outsourcery, and immediately post-completion of the acquisition disposed of Outsourcery's hosting and remaining mobile service assets to Outsourcery Hosting Limited for a nominal consideration.

In the 12 month period ending December 2010, the unaudited management accounts of Outsourcery included revenues and EBITDA of 42.7m and 1.2m respectively, with revenue and EBITDA of 23.2m and 2.6m relating to the assets being retained. The transaction is expected to be earnings enhancing for the financial year ending March 2012.

Matthew Riley, Chief Executive Officer of Daisy Group plc, said: "Outsourcery represents a strong strategic fit for the Group, bolstering our mobile division through its enhanced skill set and experience. This acquisition makes Daisy Vodafone's largest mobile managed service provider in the UK,whilst enhancing the relationship that the Group has with Vodafone and significantly increasing the proportion of group revenues which are derived from mobile, this acquisition will also drive further cross selling opportunities and provide the acquired customers with access to the Group's full portfolio of unified communications products. The transaction also helps position us for the increase in smart phone adoption and the uptake in mobile data, which we are seeing in the industry."

"The acquisition has been funded through the Group's banking facility, the recent extension of which illustrates the support the Group has behind its strategy. This acquisition is yet another step towards achieving the Group's stated goal of consolidating the fragmented reseller marketplace."






"I was a co-founder and major shareholder in Isis Telecommunications Management Ltd, starting the company in 1994. I led the sales and marketing functions as well as performing the role of Chairman. I was also a major shareholder and Director of Flexphone Ltd.

Isis was a rapidly growing business to business telecoms service provider, specialising in mobile and blackberry, also offering fixed wire and car kit installations. In 2002 after a strong period of growth we identified the need to have a major overhaul of our IT systems and business processes to enable Isis to continue its growth and to build our operations up ready for a planned sale of the business. To fulfil this role we headhunted Russell and he joined as Group Operations Director responsible for IT, Billing, MIS, Sales Support and Customer Services.

In this role Russell delivered excellent results with limited resources, including designing and implementing a major rewrite of our in house MoBill customer care and billing system that went on to win at the world billing awards in 2004 and 2005 and this played a key role in the value of our business at the point it was sold in 2006. The service team won several awards including the Sage/Telegraph National Business Awards for customer services in 2006. Russell played an essential part in the successful sale of the company to Vodafone which completed in November 2006.

In addition to his role in Isis in 2003 Russell co-founded Flexphone as a division of Isis. This was an innovative new service, built upon the Isis MoBill system to deliver a complex tax free employee mobile phone service to large corporate clients. Russell was Managing Director of Flexphone and led the design of the product, IT systems and operations. Flexphone achieved good growth winning major clients including Royal Bank of Scotland, HBOS, KPMG, National Grid and IBM. Russell led the negotiation and successful conclusion of a major joint venture with Vodafone in January 2006, and then the complex project to integrate with Vodafone as part of the JV went on to win at the world billing awards in 2007. Russell then played a key role in the negotiation and sale of Flexphone to Vodafone in May 2007.

Russell is professional, hard working, an excellent problem solver, has real hands on technical ability in several areas which was essential to the success of Isis and Flexphone. He is a great motivator and leader of staff; he is also a pleasure to work with. I would not hesitate in strongly recommending him and would work with him again should the opportunity arise. "



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