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Sphinx CST shuts IBM networking division

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Distributor Sphinx CST is closing down its dedicated IBM networking division.

According to CRN, Sphinx's Blue Channel business will be scaled down over the next three months. There will be up to 30 redundancies.

MD Mike Hatton denied the company jumped before IBM pushed it. "It was a mutual decision," he told CRN.

Blue Channel was named IBM distributor of the year in 1997 and 1998.



The management of distributor Midwich has bought the business from parent company Avnet.



The MBO deal was clinched last week but financial details have not been revealed. Midwich's directors are now Nick Pye, Roger Pulford and Nick Culley.

Midwich sells Brother, Xerox, Acer and Oki products.



Financial software vendor Pegasus has hiked the reseller accreditation fee for its Opera product.



The fee has jumped from £1,000 to £2,400, payable in £200 monthly instalments according to CRN.

Dealers are rather upset about the move, but Pegasus says it is saving resellers money because the fee includes accreditation, product training and literature. ®

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