Daisy Group has reached agreement with the independent BNS Directors on the terms of a recommended cash offer for the entire issued and to be issued share capital of BNS Telecom Group, at a price of 20 pence per BNS Share, valuing the fully diluted ordinary share capital of BNS at approximately £10.45m.

The acquisition of BNS will augment Daisy's existing capabilities and further strengthen Daisy's position in the reseller market. In the year ended July 2009, BNS recorded sales of £36.9m (2008: £32.6m) and underlying EBITDA of £3.2m (2008: £0.13m)

BNS has 8,000 customers across 22,000 business sites, with 42,000 fixed line connections, and it currently handles on average over 30 million calls per month

Daisy considers BNS's presence in the VoIP market to offer significant cross-selling opportunities with high margin and multi-year contracted products (85% of VoIP customers are contracted for five years), 25% of the existing revenue base of BNS is attributed to VoIP product

Matthew Riley, Chief Executive Officer of Daisy, said: "This offer makes great sense for Daisy, given the scale and position of BNS within the UK SME market. This acquisition will strengthen our position in the reseller market and is another step towards the Daisy Group consolidating this fragmented sector following the integration of our previous acquisitions, Daisy Communications, Freedom4, Vialtus Solutions, Redstone Telecom, AT Communications and Eurotel, and the completion of the acquisition of Managed Communications Limited earlier this month."

The acquisition includes BNS's subsidiary 3G Comms, a UK cellular service provider for SME and corporate customers. 3G Comms has a Vodafone Premier Service Provider license with 16,000 mobile connections

The fragmented nature of UK SME telecommunications market is still presenting significant opportunities for Daisy and through a combination of further acquisitions and organic growth, the company's strategy is to become one of the largest UK providers to the SME and mid-market of telecommunications services and solutions.