Clearwater advises on sale of Griffin to MDNX

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Clearwater Corporate Finance has advised Derby-based corporate internet services provider, Griffin, on its acquisition by MDNX, an independent integrator providing critical managed networks to major UK enterprises, government and channel partners.

The acquisition strengthens separation of indirect channel and direct operations creating £85m revenue managed networks business with greater scale and increased capabilities. Griffin is one of the leading providers of network services and data network connectivity solutions to the UK reseller community.

Under the terms of the deal, MDNX will also acquire Griffin’s sister company Iconnyx – a London-based company delivering managed hosting, cloud and managed IT services for mid-market companies. Iconnyx and Griffin are the principle trading companies of Octium Limited.

With the acquisitions, the combined MDNX Group will have significantly more scale, breadth of support and capability to ensure the company’s continued success in the UK business market. The company will become the UK’s largest independent integrator of its type. Group annualised revenues will be £85m, with 3000 customers, 600 partners and 300 employees.

“Both Griffin and MDNX are leaders in the managed networks market and are fully committed to independence and innovation. The acquisition of Griffin will allow us to strengthen the separation between the indirect channel and our direct operations to ensure we can offer the best possible service and support for our partners and customers alike,” said Mark Thompson, CEO, MDNX. “Griffin shares many synergies with MDNX, with products based on the same infrastructure and a similar commitment to automation.”

Iconnyx customers will benefit from greater depth of technical and operational resources, increased data centre and virtualisation capability as well as stronger, more extensive network management services via MDNX’s 24/7 Network Management Centre in Bracknell.

MDNX customers will benefit from access to a broader product portfolio and skill set with the introduction of Iconnyx’s innovative SaaS and IT services products to complement MDNX’s existing cloud, security, networks and connectivity solutions.

MDNX is committed to the quality and discipline brought about by standards compliance, and Griffin and Iconnyx will become accredited to the same ISO security and service management standards as MDNX’s core business. MDNX is one of only a small number of service providers to be approved by the Government Procurement Service to create managed networks and enable shared services for public sector bodies under the Public Sector Networks Framework (PSN).

Partner Nick Jones, who was supported by assistant director Paddy Bamford, led the Clearwater team that advised Griffin on the deal.

Jones said: “It was evident that the synergies offered to the right trade buyer would be significant – the fit with MDNX is excellent which should see significant opportunities for the combined business.”

“MDNX has extensive experience in delivering and managing innovative large scale networks, opening up new opportunities to Griffin,” said Andrew Dickinson, MD, Griffin. “Griffin has always been fiercely independent and working with MDNX means we don’t have to compromise on that. We’re delighted to be joining the MDNX group with all the advantages of increased scale and greater support that brings.”