Supercom UK division joins forces with DTK

US distributor Supercom is set to merge its domestic operation with the UK division of Taiwanese component giant DTK as part of a global alliance.

Supercom claimed to service 20,000 resellers worldwide with a turnover of $1 billion, its UK client list including Maplin Electronics.

This UK arm will merge with component vendor DTK, which already provides hardware for some of the UK's largest manufacturers, including Tiny Computers and Granville Technology. DTK has global sales worth $1 billion.

Jon Maxim, managing director of Supercom UK, revealed that talks between the companies had been successful, although the main exception to the deal was that operations would not merge in the US.

'We are now in the merger process. The result will be to give access to product lines and fill gaps in each other's range in the UK, which will produce a more comprehensive range for both companies,' he added.

Maxim also claimed the merger would not result in job losses in the UK.

Larry Wu, managing director of DTK, added: 'We will be developing a strong presence in the UK as well as other countries throughout the world.'

Supercom had been rumoured to be ripe for a takeover from a larger distributor, with CHS Electronics previously being hinted as the likely suitor for the US arm.

Clive Longbottom, analyst at CSL, said: 'The lines are blurring as it gets more difficult to make margin on boxes and components. Component companies are looking for a public face and distributors need to add more value. It's going to be harder to tell the difference between Compaq, Anderson Consulting or Computacenter.'