Distributor Sphinx CST is to break away from parent Lynx Group and restructure to become a software and services business following the sale of its Cisco division to Ingram Micro.
As predicted by CRN [20 August], Sphinx formally announced the sale of its Cisco business to Ingram last week for a total of between £10m and £11m.
Sphinx also confirmed it is not looking for a buyer and may make acquisitions of its own.
Mark Hatton, Sphinx's managing director, said: "The key focus for Sphinx is to build a business around software and services.
"Phase one was to exit the IBM business [CRN, 21 February) and phase two was Cisco. The third phrase will be to exit Lynx Group. We are not interested in selling any more of the business."
He added: "[The Cisco sale] has improved our working capital, but we will wait until the company's year-end in September, then review."
Hatton said two possible ways forward for the business would be to float next year once the market improves, or to propose a management buyout.
"Both options are attractive but there's no rush. A further delay could occur if we look at software- and services-orientated acquisitions while still part of the Lynx Group."
Speaking about the Cisco purchase, Greg Spierkel, Ingram's European president, said: "High-end networking is a critical market for us. Cisco wasn't looking to expand its partners in the UK, so it was an opportunity to add it to our licences."
Ingram will take on all 20 staff from the Sphinx Cisco division. The business will not be moved or closed at any point.
Ingram will take control of the business from 10 September.
Contingency plans follow Carillion's demise earlier this year
Oliver Tuszik says partners can boost subscription sales by taking a customer experience-led approach
Firm says enterprise business has performed 'weaker than originally expected'
Top executives from nine VARs, including Computacenter, Bell Integration, XMA, ANS and Epaton, weigh in on which server, storage and networking technologies will be red hot next year