Hybrids consigned to history books

Now Tech Data has bought SDG, the era of the true hybrid is over

Just as I was bemoaning the lack of consolidation news recently - a giant of a story lands in our laps.

Global distribution giant Tech Data (parent of Computer 2000 in the UK for anyone who doesn't know) has snapped up SDG for €277m (subject to regulatory approval).

Parent company SCH revealed it will use the cash to invest in its solutions and integration business SCC, and Tech Data claims the acquisition is a good one because it adds 'breadth and depth to its product and customer portfolios'.

Of course it is far too early to say how the two companies are going to come together, and seeing as they are now in a quiet period as the deal goes through I don't think I'm going to get many answers at the moment - but it certainly cements Tech Data's position as the largest player in the market.

Quite what the level of crossover both in terms of staff, products and management, is yet to be revealed, but I've been assured that the deal is 'very positive' for all sides and for the channel in general.

It will be interesting to see what happens with the SDG name as well - will it become TD SDG? Or is that an acronym too far?

At least the 'Specialist' part of the SDG moniker fits well with C2000's insistence of being called a 'collection of specialists'.

Earlier this year rumours linked SDG to Ingram, but sources tell me the company was not even in the running.

The last great hybrid player to go separate ways was Computacenter, which sold off Computacenter Distribution to the other industry giant Ingram back in 2009.

Of course one could always argue there is still Westcoast and XMA which sit under the same umbrella parent group, but which always insists vehemently that it is in no way a hybrid.

Without getting sentimental, I really do feel this is the end of an era - but at the same time it is a natural progression and more or less inevitable. More focus will always fall onto one part of the business, despite both being equally successful, and it is always best to have a 'core' - the key is picking what you want your core to be.

SCH has picked SCC as its core and it will be interesting to watch that company grow now with all that extra cash to invest.

I'm already looking forward to the next installment of this interesting new saga in the UK distribution story.