Inflexion invests in DWS

Mid-market private equity firm Inflexion is to make a significant minority investment in Digital Wholesale Solutions (DWS), an independent IT, communications and cloud wholesale platform, which is currently part of the Daisy Group. 

The investment is being made by Inflexion’s dedicated minority investment fund, Partnership Capital II. As part of the transaction, DWS will be demerged from Daisy Group with the majority of the shareholders of Daisy Group reinvesting directly into DWS. The transaction values DWS at an enterprise valuation of GBP1 billion.

DWS is a high growth software platform business providing IT, communications and cloud products and services on a wholesale basis to over 6,000 UK partners, from vendors including Vodafone, O2, BT/EE, Microsoft, and Virgin Media Business. Its services are targeted at resellers serving small and medium sized enterprises (SMEs) in the 10-250 employee range.

As an independent entity DWS can further pursue its strategy of being the partner of choice across the industry, providing an integrated platform for resellers to provide the very best solutions to their customers. This is becoming increasingly important as market disruptions such as the move to cloud, 5G, fibre to the premises and the “work from anywhere” trend drive SMEs to invest in digital technology.

Matthew Riley, Chairman of Daisy Group, says: “Since setting up Daisy in 2001, the Group has gone from strength to strength, adapting and seizing opportunities brought about by evolving technology and regulation. I believe that now is the right time for DWS to become an independent company and I look forward to partnering with Inflexion as DWS continues to grow and develop.”

Simon Turner, Managing Partner of Inflexion, says: “The business Matthew and his team have built up is testament to what the hard work of an ambitious entrepreneur can achieve. DWS is exceptionally well placed to continue its organic and acquisitive growth as it builds its market position further. We look forward to partnering with Matthew and his team as they continue on their impressive journey.”

The investment is subject to regulatory approval.