Westcoast acquires Clarity Ireland

UPDATE

Distributor Westcoast has acquired Clarity Ireland, the Irish distribution arm of the Horizon Technology Group, for €118.6m and as predicted by CRN.

Under the terms of the deal, Westcoast said it would retain the Clarity name, management team and staff in Ireland, which totals about 60 people. Westcoast claimed that the acquisition would help to accelerate competition in the Irish €500m technology reseller market.

Duncan Forsythe, general manger of Westcoast, said in a statement: "We intend to develop and build a very strong Irish business and expand our portfolio of products and services.

"This combines Clarity’s existing strong product portfolio, customer base and local market knowledge with our industry focus, purchasing power and vendor line-up. The acquisition also provides us with strong exposure to one of the most vibrant and fastest growing economies in Europe.”

Adrian Foley, managing director of Clarity Ireland, said: "We see this as a highly positive move for our Irish customers and staff."

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4 September 2006

Distributor Westcoast is to acquire Clarity Distribution, the Irish volume distribution arm of channel giant Horizon Technology Group, CRN has learned.

Although initial details are scarce, Westcoast is expected to make a formal announcement regarding the acquisition in the coming weeks. CRN understands the deal has no connection with Clarity Technology in the UK, also a subsidiary of the Horizon Technology Group.

The channel has been rife with speculation recently that Horizon is on the verge of selling off the division, in an attempt to concentrate more on enterprise sales in the UK.

Simon Welch, marketing director of Horizon UK, told CRN: "Such a move would be a group decision."

"Anyone buying Clarity Distribution would get a damn good and quality organisation at the top end of the market, but I'm not aware of any news yet," he said.

The announcement comes about one year after Westcoast acquired Orion Media Marketing, which it claimed would continue to operate as a separate division (CRN, 8 August 2005).

Astley Gayle, product manager for UK and Ireland at distributor CMS Peripherals, told CRN that enterprise businesses in Ireland are more akin to medium size businesses in the UK.

"If Clarity in the UK is looking to focus more on true enterprise size businesses, then a sale of its Irish arm could help achieve this," he said.

"This is an example of continuing consolidation in the market. Westcoast may be responding to pressure from rivals and acquiring Clarity in Ireland could significantly increase Westcoast's prominence."

Nick Cully, managing director at distributor Midwich, told CRN: "I've heard rumours for some time that Westcoast was looking to acquire. Clarity Distribution seems like a good fit and it would help Westcoast with a geographic expansion."

Westcoast told CRN that it had no comment to make at this time.

Further Reading:

Westcoast signing signs Apple's existing distributors to the core