Reseller Calyx has revealed ambitions to become the UK’s largest single source of networking and IT services after receiving the green light for a management buyout (MBO).
As predicted by CRN, top management have clinched backing from private equity house Alchemy Partners to grab the London- and Dublin-listed firm in a deal worth £70.2m.
Andy Mills, one of five Calyx directors taking a stake in the firm, said he was confident the motion would be rubber-stamped by shareholders at an EGM in early July.
“We want to become the largest single source of networking and IT services in the UK and Ireland,” said Mills, who is managing director of Calyx’s Matrix arm. “To do that, we need revenues of between £250m and £500m within three years.”
Calyx has seen its annual turnover rise to above £80m following a string of purchases since it went public in 2005, but Mills hinted that the shopping spree would now step up a gear.
“With fewer shareholders we can be fleeter of foot in assessing acquisitions,” he said.
Mills added that Calyx would attempt to mark itself out from heavyweights such as Affiniti, Azzurri and 2e2 by focusing on the mid-market and managed services.
“If you can demonstrate competence, mid-market firms will consider consolidating their suppliers, which fits with our strategy,” he said. “They are also faced with resource restrictions, meaning they will look at managed services.”
Nick Grossman, corporate business development director at 2e2, said: “Calyx has some very strong backing with John Moulton and Alchemy and the mid-market is a great place to be. But just going off and buying is not as easy as it was two years ago.”
Paul Rennuci, managing director at rival Affiniti, said: “The fact Calyx will be private and we’ll be public is not the issue; the issue is buying well and ensuring the whole adds up to more than the sum of its parts.”
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