Datrontech exits training market

Datrontech Group has disposed of the final chunk of networking reseller Xenon Holdings, by offloading its training arm to publican Dalkeith Inns for #4.2 million cash.

According to Mark Mulford, managing director of Datrontech Group, Xenon - renamed Expertise Group after it was acquired by Datrontech two years ago for #3.7 million - was disposed of because it was no longer part of the distributor's core business. Shareholders gave their approval of the sale at an exceptional general meeting on 4 January.

Speaking to PC Dealer, Mulford admitted that there had not been a perfect fit between Xenon and Data Connectivity, Datrontech's higher end networking operation: 'It wasn't that it fitted in beautifully with our distribution strategy, but it was a value-added operation.' In particular, he cited Xenon's Microsoft and Novell accreditation products, which did not 'marry with our high end'. The sale signalled Datrontech's exit from the training market.

Datrontech also announced at the EGM that it will extend the time period for earn-outs associated with directors of the acquired Essex recycling firm RDC by one year. The distributor acquired RDC - now called RD Trading - a year ago for #5 million and the price included a #1.85 million earn-out (PC Dealer, 27 January 1997).

Mulford claimed this was in order to enable the directors to focus on longer term growth. The decision also includes scrapping RD Trading's PC assembly operation, leaving Datrontech's Dutch arm ICP to cover that side of the business.