OpenPSL harvests Peapod

Distributor picks up security specialist in second acquisition this year

Distributor OpenPSL has acquired security specialist Peapod Distribution, which went into administration two months ago. Peapod UK, a sister reseller to the distribution firm, was not part of the deal.

Peapod is OpenPSL's second acquisition this year. The company bought Open Computing, a Hewlett-Packard distributor, in January.

Under the terms of the deal, Peapod will take OpenPSL's name and move from Middlesex to Bracknell. Peapod's parent company, e-initiative, could not be reached for comment.

Peapod will bring Legato, Tripwire, Borderware and V-One accreditations with it. Jon Ellis, sales and marketing manager at OpenPSL, said he would be negotiating existing contracts and looking for new vendors.

"We have been looking to [acquire] the ability to supply security products into our customer base for some time," said Ellis.

"This deal came at the right time for OpenPSL. It will give us a starting platform of new products and new customers."

But OpenPSL is entering a highly competitive market, in terms of both products and distribution.

"OpenPSL has no track record in security," said Bernie Dodwell, marketing director at security distributor Allasso.

"Our experience of selling to hardware channels is that they can have problems with conceptual sales, where it's a case of understanding issues rather than technologies. I can't see them making an impact at the moment with such limited products."

When Peapod entered administration on 16 October, Ray Glover, managing director of e-initiative, blamed its collapse on market conditions.

However, Ellis said: "Peapod had a few bad debts and the hybrid model didn't help. Europe was a good market for it but capital investment may have been a problem."

It is believed that the reseller arm, Peapod UK, is still up for sale.

K-Vault Systems, which sells its groupware archiving product through Peapod UK, has said it will continue to sell through the reseller.