Consolidation got off to a flying start in 2008 with two established channel names being acquired as part of aggressive expansion plans.
The first transaction saw privately held IT products and services company Impera acquire VAR Dynax for an undisclosed sum. Dynax’s partners include IBM, HP, Juniper and Microsoft.
As a result of the acquisition, Dynax will operate as a separate business unit within the Impera group, led by managing director Eddy Alejos.
Speaking to CRN, Alejos said: “Many people are looking to consolidate their businesses into a group of companies that will allow them some scale and a bit of cross selling between customer bases.
“This acquisition will allow us to invest a lot more money in Dynax and help grow the business,” he said.
Alejos said the Impera group is also planning a further series of acquisitions in 2008.
In a separate deal, Microsoft large account reseller Teksys was acquired by two private investors - the former managing director of Cisco UK, Alan Watkins and entrepreneur Kevin Lewis.
The deal, again for an undisclosed sum, is the first in a long line of acquisitions planned for 2008 by its new owners, according to former Teksys chairman Shaun Fröhlich.
“I have been retained in a director’s capacity to focus on further acquisition of similar firms because of my experience in that area,” he said. “These are exciting times for us and great for the business. It was always our intention to focus the business on Microsoft, SAM and licensing, and now the new investors want to take it to the next level and operate a build-and-buy strategy.”
Alastair Edwards, senior analyst at Canalys, said the time was ripe for aggressive consolidators to make their move.
“Because of the current climate there are going to be a lot more channel companies very nervous about the future. We will see more resellers put themselves up for sale at fairly decent prices from an investment point of view,” he said. “This presents a good opportunity for companies with money to spend.”
Teksys snapped up by PE investors