Optimism as MTV Telecom is sold

Voice distributor MTV Telecom has claimed its recent acquisition will enable it to swell its sales force, more than treble its turnover and make acquisitions of its own.

Written by Sam Trendall

The firm was acquired earlier this month by US distribution giant Scansource, which has an annual turnover of about $2bn (£1bn).

MTV Telecom’s turnover for the 2007 financial year was just under £10m, and chairman Martin Hatcher told CRN he is hoping to “double or treble” that figure over the coming year. He also revealed he wants to add 20 new recruits to the sales team this year.

Hatcher said he could look to acquire similar firms and is unconcerned about the credit crunch. “The acquisition option is open to me and if you are going to acquire, this is the time to do it.”

Hatcher indicated that his company would retain the same management team, who would enjoy a high level of autonomy. “A lot of our resellers like the idea of dealing with a company that is not a huge corporation,” he said.

The distributor was recently given access to Avaya’s mid-market portfolio and Hatcher claimed the acquisition would further strengthen his firm’s position. “Our relationship with our vendors has been hugely enhanced. Our opportunities in Europe are recognised by all the vendors,” he said.

MTV Telecom is the latest in a line of distributors to be bought out by larger companies following Westcon and Crane’s merger last year and ATC’s purchase of Rocom in 2006.

Patrick Copping, sales director for Swyx only reseller Atia Solutions, said: “There is a lot of consolidation, especially in the Avaya market, and the acquisition will definitely give MTV Telecom more clout. When I first heard about it I was a little bit worried, but I am comfortable that MTV Telecom is the right partner for us.”

Ty Gardner, sales and marketing director for reseller Universal Group, said: “I think the acquisition is a great thing and I do not see an issue with it. I really believe small, privately owned distributors will struggle in the voice world.”

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