DNS to inject cash into UK distribution division
European subsidiary of Arrow unveils plans to invest in recently-acquired distribution arm of InTechnology
DNS intends to up the ante in the distribution market by ploughing significant investment into its recent acquisition, DNS UK, formerly the distribution arm of InTechnology.
Speaking to CRN, Kurt Schoeffer, managing director of DNSint.com, the European subsidiary of US distribution giant Arrow, said: “In terms of storage and security, InTechnology fitted very well. The chemistry between our two firms was excellent.”
Schoeffer said the mid-term goal was to replicate DNS’s vendor portfolio within the UK division.
“We also intend to grow into other, new business areas in the UK,” he added.
Schoeffer refused to be drawn on mounting speculation that DNS is on the verge of acquiring security distributor Noxs, but said DNS plans to “continue being a consolidator”.
Steve Pearce, formerly chief operating officer at InTechnology, will now become managing director of DNS UK. Pearce told CRN: “We had a very successful run as InTechnology, but it started investing more in managed services at the expense of distribution.
“With this acquisition, Arrow is really moving the goalposts in distribution. It is going to be interesting to see how the market reacts.”
He admitted DNS has a challenge ahead of it to raise brand awareness, but said all InTechnology’s existing vendors have re-signed with DNS UK.
Harnish Patel, senior vice president EMEA at SurfControl, said: “At first we were concerned when we heard InTechnology had been sold, but DNS has a global presence and we are now feeling very positive about our future partnership.”
Jason Rabbetts, managing director of storage VAR Storpoint, said: “Other distributors should be mindful of what Arrow’s investment in InTechnology might mean for them. DNS has done a good job keeping Steve Pearce on board and I think this is going to give DNS UK a new lease of life, while stopping other players getting complacent.”
However, Duncan Hume, director of security at rival distributor Bell Micro, said: “Arrow has the funding to allow DNS UK to focus on the areas it chooses, but we are not concerned about the acquisition.”