Damovo soothes fears over ownership change
Reseller's UK management team reassures customers over revamped financial structure
Damovo’s UK management team has spent the last month on a customer charm offensive in an attempt to ease alarm at its change in ownership.
The pan-European VAR, previously majority owned by investment firm Apax Partners, was transferred over to its bondholders in January on the back of mounting debts and liquidity issues at its Italian arm.
Nick Dean, UK and Ireland managing director at Damovo, told CRN: “I’ve spent the best part of a month doing nothing but talking to customers and partners to reassure them and familiarise them with the change.
“The headlines made customers nervous. But it was a consensual transfer of ownership between investors.”
As part of the debt-for-equity swap, Damovo wiped its existing debts but took on another €50m loan to shore up its Italian operation.
“The financial restructuring is fully complete and we now have a financial structure that is better than ever before,” said Dean, who joined Damovo in August following the departure of former managing director Paul Renucci (CRN, 14 August).
The reseller, which achieved UK Microsoft Gold status in December, will now throw its weight behind what it sees as the convergence sector’s three main growth hotspots: IP telephony, unified communications and managed services.
Despite vowing to add new staff, Dean said it was too early to say whether acquisitions are forthcoming.
“I don’t think the new owners have had a chance to demonstrate their strategy and it will take another month to establish the corporate structure,” he said.
Keith Humphreys, managing consultant at market watcher EuroLAN, said: “The UK was not the problem for Damovo. The financial problems were in Italy, where Getronics had problems as well last year. Now it has raised €50m, as part of the debt-for-equity swap, it should be fine.”