InTechnology has revealed that it is to sell its Specialist Distribution division to DNS, the European subsidiary of Arrow Electronics for £41m in cash.
Rumours about the sale have been flying around the industry for months, but today InTechnology revealed the sale will enable it to focus entirely on its ‘high margin, high growth’ Managed Services division.
The distribution division, which employs 200 staff, specialises in storage, software and security, recorded sales of £190m for the 12-months ended 31 March 2006. Proceeds from the sale will be used to expand the Managed Services business by organic growth and acquisition, the firm revealed.
In a statement Peter Wilkinson, chief executive of InTechnology said: “I am delighted with this news. The distribution market place has become one of consolidation and we believe that rather than become a consolidator within this industry, it is in the best interest of shareholders to dispose of the business.
“This disposal will enable us to focus management’s attention on the Managed Services division, with its high margins and potential for exciting growth. We intend to grow this business both organically and through acquisitions and are confident about the Company’s prospects for further growth.”
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