Exclusive Networks deepens UK footprint with Arc buy

Pan-European distributor seizes controlling stake in Chesterfield-based Arc Technology

Sealing the deal: Olivier Breittmayer (left) and Arc managing director Stuart Reay

France-based distributor Exclusive Networks has leapt into the UK by acquiring a controlling stake in Arc Technology.

Rothschild-backed Exclusive opened a small UK office last year but has now gone the whole hog by grabbing a 60 per cent slice of the Chesterfield-based security distributor.

Arc management retain a 40 per cent stake and autonomy over strategy. Financial terms of the deal have not been disclosed.

It is the first major deal in the UK security distribution space since 2007, when Noxs was acquired by Westcon and VCW acquired Fresh Egg.

Exclusive’s existing UK outpost has just three staff and focuses on three vendors – Imperva Networks, Replify and Proofpoint.

Chief executive Olivier Breittmayer told CRN: “We realised after a few months that it is difficult to start from scratch in the UK and have credibility with vendors. The idea is to integrate our existing team with Arc.”

He added that Imperva would be an “interesting” vendor for Arc, which focuses on a small handful of vendors including McAfee and SafeNet.

Backed by €3m in investment from Rothschild, Exclusive has made two other acquisitions since 2007, in Belgium and the Netherlands. It now boasts presence in ten European territories and is gunning for turnover of €120m in its next financial year.

Breittmayer added: “We will open very soon in Sweden and we have a very aggressive strategy of international development.”

Arc has just finished its financial year and saw turnover rise by about 50 per cent to £15m.