Irish technology group Calyx is spending £40.5m to buy Matrix Communications Group’s integration business.

Calyx will raise £17.5m through a share placing, and will use £11.5m of this to help fund the deal. The total initial cash payment will be £33.5m, with the balance of the total price coming from the issue of shares and a payment £5m depending on future performance.

The deal means Calyx will take on the Network Partners Holdings and MXC businesses from Matrix. It said the deal would firmly establish it as a force in the UK ICT market.

The deal does not include Martix’ Fujin content filtering technology. Following the disposal of the integration businesses, the group plans to change its name to Fujin Technology Plc.

In a statement today, Matrix said the integration business “is the main source of revenue and profit for the group”. It said it regards Fujin as having the potential to generate significant shareholder value, and it was already in talks with potential partners. ®