Oakley Capital Private Equity has bought the data center business of the troubled UK IT services provider 2e2 and chose Daisy Group, a telecommunication services company, to manage the venture.

Data center customers have been leaving 2e2 since its appointed administrators announced they were unable to continue paying for operation of the data centers and were having a hard time finding a suitable buyer for the assets.

For Daisy, this is an opportunity to expand presence in the fast-growing data center market. Matthew Riley, CEO of UK-based 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.”

Daisy will work with existing data center employees of the business to provide data and hosting services from its data centers in Gateshead and Reading. Combined, the facilities will double the amount of data center power in Daisy’s portfolio (from 2MW to 4MW).

Riley added that the takeover also meant stability for 2e2’s existing customers. Some of them left following the request earlier this month by the company that has been appointed to administer the failing provider that its customers pay for operation of the data centers for about one week, so they would have time to find alternative solutions for their critical applications.

FTI Consulting, the administrator, sent a letter to customers, asking the 20 largest ones to foot most of the bill, and requesting that all others pitch in £4,000 plus tax. The total bill would be about £1m.

FTI sent the letter on 6 February. Two days later The Channel reported that the Atomic Weapons Establishment, one of 2e2’s largest customers had switched data center providers. Others, including Marks & Spencers, Kellogg's, RBS and Vodafone, decided to leave as well, according to The Channel.

FTI wrote in its letter to customers that it had been trying to sell the company but was having trouble finding buyers.