Distributor acquisitions heat up

Synnex Corp. of Fremont, Calif. and Insight Enterprises Inc. concluded a deal today, while across the pond Westcon Group acquired the value-added distribution arm of U.K.-based Unit 4 Agresso.

The assets of struggling PC Wholesale, a division of Insight Direct USA, Inc., which was a wholly-owned subsidiary of Insight Enterprises, were acquired for US$10 million, plus approximately $20 million for net assets by Synnex, the first move under the interim leadership of Jim Estill and Peter Larocque.

Robert Huang, the owner of Synnex, said PC Wholesale has a very stable professional sales staff and is a premier IT distributor with a specialized focus on end-of-life and refurbished equipment.

He believes that PC Wholesale can be a new vertical for Synnex.

The move will also increase Synnex’s customer base and provide additional services for its OEM partners.

Meanwhile, Westcon Group and Unit 4 Agresso signed an agreement to acquire NOXS, the value-added distribution arm of Unit 4 Agresso’s Internet and Security division. 

With this acquisition, Westcon said the company executes another step in its global strategy of building in networking, convergence, security and mobility in which it has an existing US$2 billion business.  The acquisition of NOXS positions Westcon to become a multinational distributor of network security products and solutions, the company said..   

After the acquisition, Westcon’s customers will have access to NOXS’ expertise, solutions and services, enabling them to bring integrated security solutions to their networking, convergence and mobility customers.  Similarly, NOXS’ customers will have access to a broader set of opportunities in which their knowledge of solutions such as Unified Threat Management, mobility security, network access control and regulatory compliance have become mandatory requirements.

Barry Shakespeare, executive vice-president of Westcon Europe, said the NOXS acquisition is logical and highly complementary to Westcon’s business, with very little overlap in vendors and customers. Additionally, Westcon’s model of building a strong value-added distribution business around advanced technology solutions gives our customers new business opportunities in emerging areas such as Voice over IP security, he said.

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Jim Love, Chief Content Officer, IT World Canada

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