Misco rumoured to be in talks to buy part of Phoenix IT Group

Sources say Misco is closing in on deal to acquire infrastructure service firm's High Wycombe operations

Misco is rumoured to be closing in on a deal to buy the Cisco break-fix operations of Phoenix IT Group as it looks to fulfil its services ambitions.

According to market chatter, London-listed Phoenix is hawking several non-core components of its business as it refocuses on its core managed service and datacentre business.

Based in High Wycombe, Phoenix's Cisco break-fix business is based on the firm's 2004 acquisition of Trend Network Services. According to multiple sources, this is one of the operations Phoenix is looking to sell off, with Misco fingered as the buyer.

"Staff have already been told they are moving over," one source said. "The lease on the building is up, which makes it good timing."

Misco parent Systemax is widely known to harbour services ambition under its new EMEA management team led by former Dell executive Pim Dale. Its quest to find an appropriate acquisition target is apparently codenamed "Project P".

At the time Phoenix acquired it, Trend Network Services focused on providing services through the channel, drawing most of its sales from Cisco. Phoenix still runs its Cisco network operations centre from the building but, as revealed by CRN, Phoenix recently lost its Gold partner status with the vendor.

One source remarked that with 2,300 staff, Phoenix's headcount remains too high for a £250m-turnover firm and that offloading the High Wycombe business could mark the start of a wider sell-off.

"Knowing the position the business is in, my feeling is that they will break their business back up to protect their core assets," said one bystander. "If they are looking to sell their Cisco break-fix business, I can see other parts of the business being sold too."

A Misco representative said it is the company's policy not to comment on "industry speculation". Phoenix also declined to comment.