InTechnology ropes in Allasso
Storage distributor looks to expand with Articon-Integralis distribution arm
Articon-Integralis is to sell its pan-European distribution arm, Allasso, to UK storage distributor InTechnology for €25m (£17m), to eliminate channel conflict and free up cash.
The separation of systems integrator Integralis and Allasso follows long-standing accusations by resellers that Integralis benefited from insider information and favourable buying terms.
Scott Duncan, managing director northern Europe at Allasso, admitted: "The Integralis integrator and Allasso distribution businesses have never been a natural fit, and there has been conflict. Competitors have used this to their advantage."
Duncan confirmed that the Allasso name will remain and there will be no redundancies. "Resellers have nothing to worry about because the business will be improved with new investment," he said.
"Articon-Integralis also needs to invest in its business and it does not currently have the cash."
The final cost of Allasso will rise by €3.8m on condition of an agreed level of business between the two firms after the sale.
Steve Pearce, chief operating officer at InTechnology, said the deal allows the firm to expand its UK distribution strategy across Europe and "move straight into a new area that otherwise may have taken several years".
He added: "We know you have to find the right people, get vendor partners and build a reputation, which takes time."
Pearce said the two companies have similar business models, with security and storage fitting well together. He said InTechnology aimed to gain more resellers and customers across Europe, and confirmed that there would be an opportunity for resellers from security and storage backgrounds to cross-sell.
Dan Harris, managing directors at Allasso reseller Security Partners, said he was shocked, but added: "If it gives us the opportunity to move into storage products and services sales it will be very positive."
InTechnology will add Allasso's 7,000 European resellers to its own UK partner base of over 500.