BT considers Lynx buyout

Channel insiders claim telco giant is holding talks with Cisco Gold partner.

BT and Lynx Technology remained tight-lipped this week on mounting speculation that they are locked in talks to merge.

Less than a month after BT snapped up mid-market VAR Basilica, channel insiders say the carrier is closing in on a deal with Cisco Gold partner Lynx Technology, a unit of Lynx plc.

It is not the first time BT has been linked with a Cisco Gold partner. Rumours surfaced in February that it was considering a bid for Dimension Data.

CRN understands that Sheffield-based Lynx Technology, which is also a Microsoft Gold partner and HP Business Partner Select, has already informed some of its 600 employees of developments.

Tom Kelly, UK managing director of rival Cisco Gold and BT partner Logicalis, said he was aware of the speculation, but added: “I would find it odd if BT was actually doing this, because I do not see what value Lynx would bring to its business.

“BT is already a [Cisco] Gold partner and Lynx does not have a strong pedigree in terms of driving advanced technologies such as unified communications, security or storage.”

However, other BT channel partners were sanguine at the prospect of a fifth BT reseller acquisition in two years.

John Carter, managing director at BT distributor DMSL, said.

“BT will continue to buy because its aim is to provide total IT solutions to mid-market customers. Our customers are small businesses so we will never clash.”

An anonymous source claimed Lynx Technology has been up for sale for six months, adding that it typically takes BT between nine and 12 months to close deals.

A BT representative said the company “does not comment on rumour and speculation”. Lynx Technology and Lynx plc were unavailable for comment as CRN went to press.

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