by Paul Kunert
4 April 2008
One of the last family-owned distributors in the UK, Hugh Symons, is in advanced discussions with mobile phone wholesaler Brightpoint to sell its Telecom division, with a deal expected imminently.
The Dorset-based firm recently sold its mobile airtime, hardware and services distributor Hugh Symons Communications to Carphone Warehouse and now comprises the Telecom and Information Management wings.
Sources close to the negotiations said a deal for the Telecom business was expected later this week which would give Australian mobile phone wholesaler Brightpoint an established, albeit minor, foothold in the UK communications channel.
It is understood that managing director Hugh Roper has agreed to stay on with the business for the next three years, but Hugh Symons refused to comment by the time MicroScope went to press.
Brightpoint did not respond to calls, but according to reports in the communications channel, chairman and chief executive Bob Laikin said this month he was looking for profitable growth via geographic expansion.
As in the IT space, consolidation in the communications channel continues unabated and convergence between the two markets is becoming more apparent, as witnessed by Computer 2000’s joint venture with mobile phone distributor Brightstar last year.
Andy Gass, managing director at C2000, said he believed the mobile handset and accessories distribution industry was set for further acquisitions, with pan-European giants buying up local suppliers.
"We will be one of the prime consolidators and it looks like Brightpoint will be one of the active consolidators," he said, adding that the company’s Brightstar business now employed 20 staff and was building well.
Hugh Symons Telecom sells converged IT handheld devices with HTC its biggest selling line alongside cellular and fixed line airtime.
The company’s information management division sells document scanning and microfiche technology.
