The merger with Daisy Communications could reinvigorate Virgin Media O2’s business division
"A reinvigorated Virgin Media O2 business division with more independence, perhaps supported by some acquisitions, could be a far more competitive player."
Virgin Media O2 announced the merger of its business division with Daisy Communications on 12 May 2025. It is perhaps the largest of any deal involving a telecoms operator spinning off its entire B2B division in the hope of creating new value.
The new entity will generate GBP1.4 billion annually, with an EBITDA of GBP150 million (EBITDA margin of 11%). The vast majority of this revenue will come from connectivity. The press release announcing the deal emphasised cost savings, rather than revenue growth. Virgin Media O2’s fixed B2B revenue has been in decline for a number of years and both parties are stronger in connectivity than in the faster growing IT services sector.
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