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. "