Matrix to focus on VNO activity after equIP sale

Matrix Communications Group will focus on expanding as a virtual network operator (VNO) following the sale of its equIP distribution arm to Horizon Technology Group last week.

Horizon, which also owns distributor Clarity UK, purchased equIP for £10.55m, just a year after Matrix originally acquired the security distributor.

Ian Smith, chief executive of Matrix, told CRN: “Every deal we do is now away from distribution with integration and into proper managed services. I believe the year of convergence has arrived. As a group we will focus on building the integrator business out to be a virtual network operator,” he said.

Smith denied that Matrix’s reseller and distribution units failed to work in harmony and claimed the equIP business worked well for Matrix.

Matrix is now “full tilt into acquisition mode”, but its Fujin mobile phone content filtering division will not be sold, said Smith.

“We had an offer for the Fujin business, but declined. It will now operate away from the business as a separate entity,” he added.

Graham Smee, managing director of equIP, said: “Matrix’s strategy has changed and equIP as a security distributor did not fit into this. There were times when people talked about conflict between reseller and distributor units, but we never saw any of this,” he said.

Smee added that Horizon’s focus on vendors such as Sun and IBM, and equIP’s security and training background will combine to expand both businesses’ customer base.

Simon Welch, group marketing manager at distributor Clarity UK, said the equIP purchase will compliment Clarity’s business model. “EquIP’s vendors fit with ours and the deal widens our convergence footprint. We are not into making random acquisitions for the sake of turnover.”

But, Jens Montanana, chief executive at Datatec, owner of rival distributor Westcon, told CRN: “I cannot understand why Matrix has bought a business, made it more successful and then sold it for a loss nine months later.”

trevor_treharne@vnu.co.uk