Speculation mounts over Equanet future

DSGi Business has been rocked by a number of high-profile departures

DSG International (DSGi) has reiterated its commitment to Equanet as management figures continue to leave and industry speculation mounts of a buyout bid.

Several channel sources have told CRN that suitors continue to court Equanet, with US-based Misco and WStore owner Systemax one name that has been put in the frame. One source claimed an offer of about £15m was made earlier in the year. Neither firm was available for comment.

DSGi issued CRN with the following statement about the brand: “Equanet is a strong brand and DSG remains committed to driving DSGi Business’ transformation programme to deliver an efficient, customer-focused organisation.”

DSGi Business recently posted a 32 per cent drop in interim revenues to £103.2m,
and one source claimed top-level DSGi executives were not giving the business market the requisite focus.

“Senior management do not see the difference between retail and B2B,” said the source “You talk to the same call centre about your kettle or your network.”

The past few weeks have also seen a raft of middle and senior management figures depart the firm. CRN understands DSGi Business IT and HR director Roy Mark was the latest boardroom departure, leaving last week.

Managing director Martin Dorchester left earlier in the month. Dorchester is now
working as a consultant for the Gerson Lehrman Group. DSGi Business finance director Steve Townsley resigned a couple of months ago, and head of supply chain projects Colin Dyke has been made redundant.

Shaune Parsons, managing director of VAR Computerworld Wales, competes with
Equanet on the Value Wales public sector procurement framework. “We are all trying to do volume business at two per cent margin, but services is what keeps us going, which Equanet does not do as much of,” he said.