TNS managing director catches acquisition bug
Following its purchase by BT less than two weeks ago, VAR director's acquisition plan raises eyebrows
The managing director of VAR TNS has revealed he is considering the purchase of a distributor, just two weeks after his company was acquired by BT.
BT came under close scrutiny from the channel last week after it acquired TNS for an undisclosed amount – its second VAR acquisition in six months (CRN, 7 November).
Mike Harris, who has a 12-month rolling contract to remain managing director of TNS under the terms of the acquisition, told CRN he is looking for a suitable distributor to buy, and will use funds from the acquisition to make the purchase, which will be run as an entirely separate enterprise from TNS and BT.
“I’m actively looking to acquire a specialist trade distributor that can add value. I’m after a voice orientated low-end distributor with a turnover of £7m to £15m,” he said.
Patrick Murphy, a BT representative, said: “We cannot comment on Mike’s plans. It is none of BT’s business.”
However, Gordon Davies, commercial director at former BT reseller Compusys, was surprised.
“I’m amazed that BT is allowing him to do this. It must put him in an advantageous position,” he said.
Mark Evans, director at BT reseller ME Consultancy, was unsure about the implications. “It could create conflict and BT now has so many routes to market. In an ideal world I would know what is happening, but BT is not an ideal world,” he said.
But John Carter, managing director at BT distributor DMSL, said there is room for additional competition.
“Some people are nervous about what is happening at BT, but things have changed for the good for VARs. BT is a services company now. There is so much business out there and BT has finally understood what distribution means to them,” he said.
Carter appeared unconcerned by Harris’ plans and claimed that DMSL does not have any current competition “due to the range of BT’s products”.
Keith Humphreys, managing consultant at research house euroLAN, said the m ove could prove a good idea for Harris, but might “bamboozle” channel partners.
“One distributor to service the new BT channel set-up would make sense. There must be some conflict as strictly speaking he is a BT employee.”