Channel conglomerate Lynx Holdings is merging its distributors, software firm Sphinx Level V and hardware concern CST Group, to form Sphinx CST.
The combined organisation will have a #50 million turnover.
The group denied the merger was a cost-cutting exercise, but admitted administrative, financial and logistics functions were being consolidated and based at CST's site in Leeds. Sphinx offices in Maidenhead and Matlock will act as sales sites. Lynx claimed there would be few redundancies.
Bob Henderson, MD of Lynx Computer Services and chairman of the combined firm, said: 'Our problem was that we were dealing in modest volumes and we needed the critical mass. There was confusion as well because the companies were beginning to sell competing products.'
Under the combined management team, Sphinx Level V MD Terry MacDonald will become deputy chairman, and CST MD Paul Hayhurst will become MD.
The financial director has yet to be selected from the two existing financial directors who are jostling for the one post.
According to Lynx, the reorganisation is part of a growth plan which includes looking for European acquisitions in the coming year. The group is also expanding its suppliers and is in talks with network computer supplier NCD.
Lynx, which is a computer, financial services and automotive systems group, posted a rise in profit to #6.95 million for the year ended 30 September 1996, up from #2.56 million the previous year. Turnover rose from #32 to #87 million over the same period. Sphinx CST employs about 200 staff.
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