Online retailer eXpansys has admitted that channel conflict played a part in its decision to sell its distribution arm, Portix, to distributor Micro Peripherals (Micro-P).

Micro-P is stumping up about £1.16m for the Windows Mobile distributor, which has a turnover of roughly £13m. It is the second established mobility distributor to be bought in as many weeks following Brightpoint’s acquisition of Hugh Symons (CRN Online, 30 April).

Roger Butterworth, chief executive of eXpansys, said operating a hybrid model had created issues for the company, adding that its e-tail business offered a higher return on investment.

He said some of the proceeds would be used to continue eXpansys’ acquisition drive.
Butterworth confirmed that Portix’s staff have been moved to Micro-P’s nearby offices in Manchester and Basingstoke.

Mike Alden, managing director of Micro-P, said: “We intend to maintain the Portix name and will operate with a business-as-usual approach. I am confident that Steve Jones, Portix’s general manager, and his team will be able to expand the business with Micro-P’s support.”