The proposed acquisition of Bytech Systems by US-based distributor Hall-Mark is expected to be completed within the month, despite hitting an earlier stumbling block.
In May, PC Dealer revealed that Hall-Mark, a division of electronics company Avnet, was negotiating with IBM RS/6000 distributor Bytech in a bid to enter the UK market.
But a source close to the negotiations claimed that the deal, which was expected to be completed at the end of June, had been held up.
Several companies are understood to have bid for Bytech, including a large venture capital fund, but it is understood that other offers have fallen by the wayside.
The source claimed: ?Hall-Mark is the most significant player bidding, and the cross-over between it and Bytech is very good. A major venture capital fund made a bid, and the fact that nothing has been announced suggests that this has fallen through ? which leaves Hall-Mark.?
Another channel source said: ?We are sure that it?s Hall-Mark and we?re sure that it?s imminent.? He added that the deal is expected to be completed by the end of this month.
George Smith, president of Avnet Computer Marketing Europe, confirmed that Avnet had been in talks with Bytech, but insisted Avnet had no plans to acquire over the next few weeks.
Smith said there was a gap in the European market for a global distributor of mid-range systems. Hall-Mark focuses on IBM RS/6000, generating $86 million turnover on that platform alone. It is understood that Hall-Mark wants to grow to be a pan-global RS/6000 distributor through acquisition, and Bytech fits its bill.
Other major vendors carried by Hall-Mark include Hewlett Packard 9000 and Digital Alpha platforms, PC and peripheral configuration. The company is also a major Oracle distributor.
Bytech refused to comment.
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