28 Jun 2010
Arrow Enterprise Computing Solutions (ECS) has claimed its latest acquisition is ‘complementary’ to its existing business and will leave little, if any crossover, of technologies and partners.
In another well-kept distribution industry secret, Arrow ECS snapped up Sphinx last week for an undisclosed sum.
Laurent Sadoun, EMEA president of Arrow ECS, told CRN the firm will integrate the Sphinx business into its existing security and networking division, and keep hold of the Nottingham headquarters of Sphinx as a centre of excellence in networking and security.
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“This acquisition gives us a leadership position and the opportunity to better service suppliers and customers,” he said. “There is not much overlap in the product portfolios and no overlap in our customers – it is very complementary. Arrow ECS will operate the new division.”
He said Arrow ECS expects to complete the front-office integration by September and the integration of the entire organisation by the end of the year, while keeping the Sphinx employees on board.
Sadoun was non-committal on the future of Sphinx managing director Mark Hatton, but CRN understands he left the firm last week.
Rival distributors said the acquisition was an interesting move.
Ian Kilpatrick, chairman of Wick Hill Group, said: “I am sure there will be some strategic benefits for both sides. We operate in a primarily different market to Sphinx and it is unlikely to have a tangible effect on us.”
Grahame Smee, managing director of Cohort and Appspeed, said the move was positive for the market. “Sphinx has a good reputation and carries some good products. It shows that the market is coming back with a lot more M&A activity.”
Stuart Reay, managing director of Arc Technologies, said: “This leaves a space open for the likes of us and Wick Hill to become the next biggest player in this distribution space.”
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