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27 Mar 2009
One in 10 top UK IT resellers are “wounded animals” ready to be picked off by larger predators.
That is the verdict of research by market watcher Plimsoll, which claims that the downturn represents a huge opportunity for acquisitive firms with access to capital.
After casting its eye over the UK’s 1,000 top resellers, Plimsoll identified that 100 are “ripe for the picking”. Its conclusion was based on a scoring system incorporating overall financial strength, ownership, valuation and future potential.
David Pattison, senior analyst at Plimsoll, said: “Current conditions have presented an unprecedented set of opportunities to buy into a business that even a year ago would have been unaffordable.”
Concorde Excel Holdings was recently set up by a consortium of businessmen to buy VAR Concorde Informatics.
Last week it also snapped up Phase CRS, and Concorde managing director Colin Meakin claimed opportunities were rife.
“Many IT companies have been around for 25 years and never really grasped the services nettle,” he said. “We see an opportunity to consolidate a number of smaller players, strip out some of the cost, and invest in services.”
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