Distributor looks in voice arena

InTechnology is looking to acquire this year, and is particularly keen on firms in the voice over IP (VoIP) space, chief executive Peter Wilkinson has revealed to CRN.

The distributor, which recently sold the European arm of its Allasso division to Magirus (CRN, 3 April), last week released a trading update on its financial year ended 31 March 2006. It expects to reveal its preliminary results in June.

According to the update, the UK business achieved a “significant improvement” in second half profitability, but earnings before interest, tax and amortisation will be “marginally below” expectations.

“Distribution has had a tough time, but I think we have restructured very well,” said Wilkinson.

“Selling [Allasso] Europe was a huge challenge because it was burning cash. Now we can put all of our efforts into managed services. We are also looking at a couple of acquisitions, particularly in the VoIP space.”

Wilkinson declined to expand on the firm’s acquisition plans, but confirmed it would be “sometime this year”.

Grahame Smee, managing director of rival distributor equIP, said: “We launched our voice and data division internally rather than going down the acquisition route and it is doing very well. We are not concerned about other players moving into this space.”

Alastair Edwards, senior analyst at Canalys, said: “VoIP is definitely an area of opportunity for distribution. We are predicting a rapid migration to IP-based platforms over the next three years.

“The issue is whether a firm such as InTechnology can do it. It tried to increase security on a pan-European level and that failed. This is a completely new market with a new set of vendors. It would definitely need to acquire the necessary skills through acquisition.”