Ingram Micro will close its niche communications division as part of an ongoing strategic review into the business.
The division was established in 1999 and came to Ingram through its acquisition of Tech Pacific in 2004.
It focused on distributing Telstra-branded fixed-line products, sourced from Hong Kong-based supplier, VTech.
As a result of the changes at Ingram, VTech will set-up a local presence and take over Australian distributorship of all products. All 21 Ingram communications staff will switch over to VTech from July 1.
“We are focusing on markets that are core to us – [the communications division] is a very niche segment,” vendor manager, Matt Sanderson, says.
“If you look at our core business, we are driving our enterprise group, and we have made the Vantex acquisition, so we’re focusing on these segments of the business.
“It’s a win-win – the guys move on, and VTech has a locally focused distributor. The same products will be going to the same customers, so it’ll be a smooth transition.”
Sanderson declined to comment specifically on financials, but indicated the communications division had not been a significant revenue contributor.
In a statement, Ingram vice-president and managing director, Jay Miley, says closing the communications unit tied into ongoing efforts to focus on core markets and areas of opportunity.
“After looking closely at our communications division, and talking things through with out partners, Telstra and VTech, we collectively decided the most sensible thing was to support VTech in establishing a direct representation in Australia,” he says.
In the press statement, VTech Telecommunications president, CH Tong, said he was excited to establish a direct operation locally.
The company supplies a range of branded products for global telcos including BT and T-Home.
Earlier this year, Ingram announced a restructure of its business and rebranded its Solutions Group to Enterprise Technology Group. The distributor also closed its Adelaide and Canberra offices.