Calyx Group will create a converged network services giant in the UK, following the Irish VAR’s planned acquisition of the Integration Division of Matrix Communications Group, as revealed by CRN online.
CRN exclusively predicted that an Irish firm was in the frame to acquire Matrix’s Integration business (CRN, 15 May), and last week Calyx offered £40.5m in cash and shares.
Calyx made its first UK acquisition last year when it snapped up Cisco and Nortel reseller ITS Technology Services for £2.5m (CRN, 31 October). Last week, the VAR floated on the Irish Enterprise Exchange, releasing an additional £17.5m in funds. This follows its listing on the Alternative Investment Market in March last year, which raised £7.25m.
Maurice Healy, chief executive of Calyx, told CRN: “Rather than making half a dozen smaller acquisitions, we have achieved our target in one swoop.” He also said that the Matrix brand will continue to exist.
“This deal gives us a complete handle on the mid-market. Based on broker forecasts, our turnover should now reach £85m,” Healy added.
Ian Smith, chief executive at Matrix, who will become a non-executive director of Calyx, said: “Through this disposal we are realising good value for the Integration Division. In a fast consolidating market, our Integration Division needed to scale up to take part in the growth opportunity in managed services.”
Matrix’s mobile content filtering unit, Fujin, will not form part of the acquisition, and Matrix Communications Group will change its name to Fujin Technology. However, the deal will include Matrix’s recently-formed ViNO division (CRN, 8 May).
Smith added that Matrix’s board “regards Fujin as having the potential to generate significant shareholder value”. However, last week Matrix’s chairman, Alan Watkins, warned that Fujin will post results below expectations for the year to October 2006.
Ian Cook, chief executive of rival VAR Logicalis, said: “I think £40.5m [for the company] is a good price.”
Alastair Edwards, senior analyst at Canalys, said: “Either Matrix had decided it has made so many acquisitions in different directions that they no longer fitted together, or a roll-up and sell strategy was always the plan.”
The deal builds on distie's earlier promise to distribute a broader range of electrical goods
Services firm sees revenue increase 23 per cent
Execs Zak Virdi and Neil Lomax open up on the rationale behind acquisition
CEO Steve Brazier slams vendor titans at annual event in Barcelona