Bell finally closes OpenPSL deal
Firm acquires distie for $36m
Bell Microproducts has netted high-end server and storage distributor OpenPSL for $36m, after the firm opted for a trade sale, in line with industry predictions.
As revealed by CRN last month, Bell, US parent of distributor Ideal, had been looking at possibly acquiring OpenPSL to strengthen its UK high-end server and storage business.
But the deal was thrown into doubt when OpenPSL's management said it was considering an initial public offering (IPO).
Last week, speculation intensified that Bell was ready to take over the firm if an IPO did not materialise.
Graeme Watt, president Europe and Middle East at Bell, said the move was a "direct implementation" of Bell's strategy to expand in the UK and Europe. He added that the distributor intends to expand its relationships with vendors.
Bell has admitted it is always on the look-out for acquisitions as it plans to be the leading pan-European storage and enterprise distributor.
Mike Kontowtt, chief executive of OpenPSL, said the brand would remain for the "foreseeable future", adding that the IPO had only been a possibility.
"We were evaluating all the different options. It was decided by the shareholders that it was in their best interest to take the trade sale route," he said.
The deal mirrors other distribution changes across Europe as huge firms acquire smaller distribution businesses to diversify their offerings.
Brian Pierce, senior analyst at IDC, said: "The coming together of OpenPSL's server business and Bell's storage business is interesting. There will probably be similar match-making by distributors trying for more impact."