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26 Feb 2007
Distribution giant Ingram Micro is on the verge of abandoning its search for a UK acquisition target in the Radio Frequency ID (RFID) space and is leaning towards setting up its own specialist team.
Speaking to CRN after the firm posted ‘record’ year-end results (CRN Online, 16 February), Hans Koppen, president of Ingram Micro Europe, said RFID is a fast developing area that Ingram is keen to develop.
“We keep looking at [acquisition] targets,” he said. “We have the RFID business we acquired in the Nordics and that has produced good margins. We have already hired staff to expand this business to Finland. However, we are still looking for [RFID] coverage in the UK and have been searching for somebody that we can make an offer they can’t refuse on, but no suitable business fits the bill.
“The few firms we have seen in this space are very small and so far we have not been able to find a way to pick up an existing business in the UK. We may have to greenfield our own RFID business as I think we have more or less exhausted all avenues.”
Koppen added the UK has been a ‘highlight’ for Ingram over the past few quarters.
“The UK is growing well and we are making steady progress,” he said. “It is definitely one of the countries that we are very happy with at the moment.”
Marion Obergfell, EMEA channel marketing manager at auto-ID vendor Zebra, which manufactures RFID printers, said it was an interesting move on Ingram’s part as the RFID market has yet to take off.
“We had high expectations for our RFID partner track when we launched our PartnerFirst channel strategy, but that is not meeting expectations yet,” Obergfell said. “RFID is more of a door opener right now as firms will still go for tried and tested technology.
“Distributors like Ingram are not best placed to create demand for the technology at the moment, that is more down to the vendors in the space. This is an interesting move.”
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