Matrix reloads on acquisition front
MCG adds Norwood Adam and Bedrock Networks to earlier buys
Matrix Communications Group (MCG) has bought distributor Norwood Adam and reseller Bedrock Networks for £2.5 and £2.4m respectively.
The valuations depend on both firms meeting performance targets.
MCG, which changed its name from Offshore Telecom in March this year, also paid £100,000 last year for a half-share in Norwood Adam Technical Services, a network operations centre business set up by the distributor which reported a turnover of £614,000 for its latest financial year.
MCG also bought Intrinsic Networks in December 2003 and Decorum Networks in April this year, and owns a reseller arm: Matrix Network Solutions.
Manny Pinon, sales and marketing director at Norwood Adam, said: "It's going to be business as usual for us, except with the clout of a plc behind us. There will be no changes, except that we are now recruiting."
Andy Palmer, UK managing director of Foundry Networks, said the deal will make Matrix one of the largest networking integrators in the country, providing alternative products to those of Cisco.
But Jon Murphy, product manager at VAR Data Integration, expressed concerns. "It will be interesting to know how it will handle the conflict of interest between distribution and reselling. It would be unwise to jump to any conclusions, but it does create a potential doubt," he said.
Pinon added: "Stigmas about this sort of thing have eroded. For example, take Computacenter and Metrologie. If VARs have an issue, I urge them to call me."
Bedrock, an Extreme reseller founded in 2001, recorded turnover of £4.1m and a profit of £1.1m for the year ended 31 July 2003. David Grant, who set up Bedrock after leaving his position as Extreme's UK managing director, will take a seat on MCG's board.