Dublin-listed Horizon Technology, which distributes information technology products, is to sell its Irish distribution arm Clarity Ireland for over €6 million.
Horizon announced yesterday that an agreement has been reached with British technology group Westcoast to dispose of its Tallaght-based subsidiary.
A payment of €3.1 million will be made on completion of the sale, and the remaining €3.1 million of the cash consideration will be deferred for a period of three months. Westcoast will also assume responsibility for Clarity's working capital debt of €9.1 million.
This disposal will allow Horizon to reduce its borrowing, and to concentrate on the enterprise infrastructure and applications market, an area that is experiencing strong growth.
"Following the disposal of Clarity Ireland, the group now has a sharper focus on the enterprise solutions market and will increase the level of resources allocated to take full advantage of the exciting opportunities offered by this market," Horizon's chief executive Gary Coburn said yesterday.
Andy Dow, marketing director of the Westcoast group, confirmed that there would be no immediate changes to Clarity's structure as a result of the transaction.
"Westcoast will be retaining the Clarity name, management team and staff in Ireland," Mr Dow said.
"Westcoast is totally focused on distribution in the same product areas as Clarity. We believe we will deliver them the framework to grow both their revenue and their market base."
Clarity's managing director, Adrian Foley, said this was a positive move for its Irish consumers as it would enable the company to expand its product portfolio.
"Clarity can now offer its Irish customer base a complete computing range from desktop PCs, notebooks, high-end servers and mobile solutions to network products, printers, peripherals and related accessories," he said.
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