Logcom eyes fourth buy-out target

Channel spending spree continues as Group enters talks with hardware VAR

Logcom Group's channel spending spree shows no signs of slowing, after the company announced it was in talks with Leeds Direct Distribution (LDD).

Back in November Logcom announced it was looking to buy five firms before Christmas. If the deal with LDD goes ahead it will be the VAR's fourth acquisition in under six months.

Simon Hollway, head of investor relations at Logcom, said he expected the LDD deal would be completed within the next month.

"The acquisition is for an undisclosed amount, consisting of a cash and share deal. LDD is a VAR selling mainly hardware and is a Hewlett Packard Select Partner and Centre of Excellence," he said.

Ian Sellars, operations director at LDD, said: "We have been waiting for an opportunity like this for years.

"The reseller industry is crying out for consolidation, and with increased pressure on already slender margins, becoming part of Logcom was a logical step to help secure the growth of LDD."

Hollway said although the VAR has managed to avoid any redundancies from its acquisitions so far, "in any consolidation job losses will inevitably occur as duplicate corporate overheads are removed. We certainly expect there to be losses in our future acquisitions.

"Heads of agreement have been signed with a fifth company, although the name will not be announced until the transaction has closed."