Tech Data: Azlan 'still rival'

US distributor claims 'business as usual' until acquisition is finalised

Tech Data has claimed it will be "business as usual" until its acquisition of UK networking distributor Azlan is finalised.

Last week the US distributor and its UK division, Computer 2000 (C2000), made an offer of £139.6m for Azlan, which is still subject to approval from its shareholders.

Graeme Watt, president of operations at Tech Data Europe, said the firms will still be classed as rivals until the deal is completed on 31 March.

"There are a number of things about Azlan that set it apart from its competitors, such as its product offering, training and technical support and its specialised salesforce," he said.

The Azlan brand will give Tech Data a competitive advantage, Watt claimed.

He added that Tech Data intends to "preserve and build on brand equity". This will also be C2000's first venture into the training side of business, he said.

Watt added that Tech Data values Azlan's engagement with its resellers and "wishes those relationships to continue from strength to strength".

He said: "We want to get into the high-end marketplace across Europe and we think this acquisition will help us achieve this."

The news has come as no surprise to industry players.

Peter Harkin, group marketing director at distributor and training specialist Crane Telecommunications, said: "We have predicted this consolidation for some time.

"We have seen that the large distribution players struggle to maintain the entrepreneurial organic growth of their early years. Acquisition is their easiest route to growth and new technology skills."

However, EuroLAN analyst Keith Humphreys said the brands should be kept separate.

"If Tech Data keeps C2000 and Azlan autonomous but merges the networking aspects it will benefit both companies," he said. He added that the deal will benefit Cisco, a partner of both distributors.

Azlan also has a strong security business, supplying products from vendors such as RSA. Steve Wheeler, UK sales manager at RSA, said he hoped the Azlan value-add business would be kept separate from the C2000 broadline distribution.