Dan Technology, the tier two PC vendor, has made its firstnder one roof to enable market infiltration. acquisition, Aylesbury-based Paragon Network Services, to establish its corporate network arm.
The mail-order specialist acquired Paragon on 12 May, following the decision to centralise its networking operation in-house, reflecting the industry trend towards consolidation. Paragon's name was changed to Dan Network Solutions on 1 June to officially brand it as part of the Dan group. Dan's group turnover for 1997 was #46.73 million.
Phil Gamble, formerly managing director of Paragon, will continue to head up the operation. He said: 'We're expanding quickly, due to our providing national coverage now instead of purely in the South. We worked closely with Dan for over three years and this deal centralises Dan's network operation. We will be focusing on the corporate and SME market.'
Peter Hobday, group financial director of Dan Technology, added: 'This is the first step naturally. It made sense to bring the network services in-house, but we will continue to grow organically, although if an acquisition came up we may use Dan Network Solutions as a vehicle to acquire other companies.'
Consolidation within the second tier of PC vendors is a growing trend as highlighted by Edward Percieval, head of corporate sales at another tier two vendor Mesh Computers. 'There is a lot of consolidation in the industry with the top five manufacturers getting bigger. Second tier players have got to find a place to survive - they can't just sell boxes,' he said. 'Applying a good reputation for products to services is obviously a risk, but you have to find a way to stay in the game and look at the long term future.'
Hobday added: 'Bringing a complete range of networking services under one roof will not only prove very attractive for Dan's existing customer base, it is likely to take us into new markets.'
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