Daisy Group takes over 2e2 datacentre business

Daisy Group has thrown 2e2's customers a lifeline by agreeing to take over the IT services firm's datacentre business.

The deal has been bankrolled by private equity firm Oakley Capital, who set up a special purpose vehicle called Daisy Data Centre Solutions to acquire 2e2's ailing datacentre arm.

The company said it will be working with 2e2's existing datacentre employees to continue providing services from its sites in Gateshead and Reading.

The merger, which was announced on the stock exchange earlier today, is expected to increase the firm's datacentre power capacity from 2 Mw to 4 Mw.

2e2 collapsed into administration on 28 January, resulting in hundreds of its staff being made redundant.

The news is sure to be welcomed by 2e2's remaining datacentre customers, who were ordered to cough up 4,000 by the firm's administrators to safeguard the migration of their data to an alternative provider.

Since then, several hosting providers have offered help with moving its customers' data for free.

Matthew Riley, CEO of Daisy, said: "This appointment provides 2e2 customers with the opportunity to work with a long-term partner with proven expertise in the growing data and hosting market.

"Through the additional data centre facilities the Group is in a position to significantly expand its data and hosting footprint, providing stability to existing 2e2 customers and offering further expertise and resource to Daisy customers," Riley added.