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Redstone Group to sell Technology division to reseller PFH

Microscope contributor

Redstone is in advanced talks with reseller and managed service provider PFH Technology Group to sell its Technology division in Ireland.

The turnaround of the troubled integrator has already begun with recently installed chairman Ian Smith and chief executive Tony Weaver closing the BSF division and only yesterday sold its PBX services arm.

The two continue to review operations and have made no secret of the plan to dispose of non-core and low margin activities - Redstone Technology is ostensibly a reselling operation and so fits that criteria.

Venture capitalist sources reckon PFH has already started due diligence ahead of drawing up a sales and purchase agreement.

Dublin-based Redstone Technology contributed £400,000 EBITDA in fiscal 2010 ended 31 March but sales fell 33.5% to £9.3m as the bottom fell out of the Irish IT market.

The Technology unit employs around 70 staff and majors in selling HP enterprise servers and storage. It also provides a range of professional and consulting services.

In March 2006, PFH Computers (founded in 1983) merged with CK Business Electronics to form PFH Technology Group.

The Cork-based group, which claims to be the largest private held ICT supplier in Ireland, holds high level accreditations with HP, IBM, VMware and Symantec and employs 170 staff including over 100 engineers.

Sales for the twelve months to 31 December 2008 were €31.3m (£27.5m), down 13% from €36m in the previous fiscal period, while it retained profits of €64k (£56k) compared to €1m.

Redstone refused to discuss the sale and PFH was unavailable to comment at the time of
going to press.

 


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