Channel M&A activity holds steady

Number of European deals involving distributors and resellers remains at a high level

Acquisition activity in the UK and European channel remains close to a historic high despite the slowdown.

According to Regent Associates’ European Technology Acquisitions first quarter review, the total number of deals involving tech firms increased from 691 to 715 between quarters four and one.

Deals involving distributors and resellers fell from 60 to 53, but Peter Rowell, executive director at Regent, told CRN: “Historically this is still a very high level and there is a lot of consolidation still happening in this space.”

Computer 2000 parent Tech Data is emerging as an aggressive European consolidator after snapping up three local distributors in the last 90 days (Channelweb, 28 May).

Andy Gass, managing director of Computer 2000, revealed that Tech Data has also taken on a team of 20 staff from a rival in Germany to bolster its local mobile device business.

“This shows there is a degree of consolidation starting to happen,” said Gass.
Rowell said: “There is still more hoovering up to be done. Volume distributors are thinking about where they can add value.”