Daemon was already active within the Department's of Transport and the Environment before the merger of the two Departments. Daemon's SLD product was in use within the Department of the Environment, and Daemon consultants had carried out a number of strategic studies for the Department of Transport. Two studies of note dealt with Addressing Standards and Intranet and Internet connectivity respectively.When the two departments merged in 1997, Daemon and YACC working as a consortium entered into a Framework Agreement with the newly formed DETR for the supply of strategic consultancy and development to the IT departments of their various business units.
At the time of the merger, Daemon assisted IT staff from the old DOT and DOE in making plans for a new, combined network. Since then their skills have been used in many areas, including studies into various aspects of Intranet/Internet implementation, and more recently, fulfilling the role of Technical Assurance Co-ordinator to the Department's Migration to a 32-bit operating system.