Bytech acquisition feeds hopes of triple turnover

Buyout Distributor expects to hit #100 million under Avnet.

IBM RS/6000 distributor Bytech Systems is expecting to triple its turnover to #100 million in two years, following its purchase by US components giant Avnet.

As exclusively revealed in PC Dealer (7 May 1997), Bytech has been thrashing out a deal with US RS/6000 distributor Hall-Mark, a division of electronics distributor Avnet, for the last year.

Ken Moss, Bytech managing director, said: 'We've been in discussions with a few businesses and we've been talking seriously with Avnet for about eight months. It was as much a choice for us as it was for Avnet.'

The Bytech purchase was seen as a preliminary move by Avnet into the European market.

Moss said: 'I would be disappointed if we were not at #100 million in the next two years. With some of the franchises we have the opportunity to obtain, it should take off.' He added that the distributor was expected to achieve #45 million this year. Bytech will now supply IBM AS/400 machines as well.

The Avnet acquisition will give Bytech the freedom to operate as 'entrepreneurs in a corporate environment', according to Moss. He said: 'Avnet's philosophy is to buy businesses with entrepreneurs and it doesn't want to lose that.' As a result of the purchase, Bytech will be able to improve the credit facilities available to its resellers.

George Smith, Avnet European Group marketing president, said several UK mid-range distributors had been considered as potential purchases, but Bytech's technical skill and management made it the best option for the US distributor to make its debut in Europe. 'The relationship promises to be very lucrative on both sides,' he said.

Kevin Bishop, IBM northern Europe director for distribution channels, welcomed the purchase and claimed that IBM had enjoyed close relationships with both Avnet and Bytech.