InTech pair to storm storage

Storage distributors Storm and VData are to merge as part of a bid by the companies to become a dominant force in the storage arena in the UK and Europe.

Storage distributors Storm and VData are to merge as part of a bid by the companies to become a dominant force in the storage arena in the UK and Europe.

The merger follows Internet investment company InTechnology's acquisition of the companies for £165m. VData, which has 41 employees, posted a pre-tax loss of £1.6m on turnover of £28,000 for the year ended 31 December.

Storm, with 116 employees, recorded pre-tax profit of £5.4m on turnover of £102m for the year ended 31 March. InTechnology will also try to raise £33m to finance a European expansion.

Bryn Sage, sales director at Storm, said the two companies, which already share a sales office and have headquarters in Harrogate, will become separate divisions of InTechnology. Both companies will keep their brands because "they play in different markets". Sage also ruled out any redundancies or office closures, saying a recruitment drive is on the cards.

He said the management team of VData and Storm will remain in place and become executive directors of the new firm, ensuring the companies do not change focus. "There will be no impact on resellers at all. Our finance director understands the channel and the core management team will remain the same," said Sage.

He added the merger had been motivated by the need to be "recognised as a large, credible organisation. We think both companies are in the vanguard of the storage arena and we want to remain in the forefront," he said.

Peter Wilkinson, former managing director of both distributors and chief executive of InTechnology, claimed the global demand for data storage has increased by 80 per cent in the last two years. The merged group will aim to become "the UK's first, full-service, data management solutions provider", he said.