Datrontech break-up leads to Portable Add-ons sale

The sale of distributor Datrontech's assets has begun with a management buy-out of its mobile solutions arm Portable Add-ons.

The sale of distributor Datrontech's assets has begun with a management buy-out of its mobile solutions arm Portable Add-ons.

Managing director Steve Muttram and Ian Boyle, co-founder of Datrontech, which went into receivership two weeks ago, bought the division from receiver Deloitte & Touche for an estimated £400,000. The company was trading as normal at the end of last week.

However, contrary to rumours, Boyle said he is not interested in buying the entire Datrontech group. "There are definitely divisions I am not interested in," he said. Boyle will take on a consultative role as chairman of the company with Muttram continuing as managing director.

Muttram said: "I wanted Portable Add-ons, and Ian is in negotiations for more of the group. If he gets more they will be spun off into separate companies. He has no interest in putting them together. There will never be another Datrontech."

Several firms have expressed interest in Datrontech since its demise, including Northamber and Actebis.

Other divisions up for grabs include Datrontech Retail, Data Connectivity, Services and overseas operations.

An industry source expressed surprise that the receivers had sold the most lucrative part of the business first. The company is believed to have debts amounting to just under £14m, but is expecting to receive about £10m back. The deadline for repaid debts has been set for the end of December.

"They are going to find it increasingly difficult to sell the rest of the business, now the most lucrative part has been sold," the source said.

Mandy Birtles, marketing director for Portable Add-ons said: "Many of the interested parties have backed out, and I think the receivers will pull out if others are not found soon."

Meanwhile, it has emerged that James Morgan, managing director of Data Connectivity, is expected to leave the firm even if a buyer is found. According to industry rumours, Data Connectivity is the other 'premium name' up for sale from the Datrontech collapse.

First published in Computer Reseller News