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By | Paul Kunert 6th August 2012 15:11

MDNX swallows Griffin: I ain't afraid of no channel conflict

Pure channel firm's new daddy has 'different' approach

Network integrator MDNX has devoured pure channel connectivity provider Griffin for an undisclosed sum.

MDNX was formed in 2003 through the acquisition of Solution 1, CIG (which traded as CI-Net) and VTL - all which focused on the provision of data networking and data centre services.

The buyer is split into three units: a direct sales arm targeting corporate enterprises, a public sector-focused business and a channel operation that will bolt on the Griffin organisation.

The acquisition adds £21m worth of revenue to MDNX's top line, taking group sales to circa north of £80m and the base of employees to roughly 300.

Mark Thompson, MD at MDNX, said the integrator would benefit from greater economies of scale in terms of buying power and a stronger balance sheet to go after bigger contracts.

He said that MDNX's two direct sales engines - corporate and public sector - operated separately from each other as well as from the indirect sales organisation.

"The majority of the channel is not competing in the large enterprise space ... so there is no conflict," said Thompson.

However, Griffin takes its services to market via a network of 600 resellers – some of which reside in the telco space, some of which are network specialists while others are larger integrators.

The latter includes customers such as Logicalis and services house Phoenix – which may not be comfortable with the various routes to market of Griffin's new parent.

Andrew Dickinson, managing director at Griffin, admitted there were already instances where "we compete with MDNX".

So sorting out this strategy should prove interesting for MDNX, Griffin and the hundreds of channel partners out there. ®

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