Elcom IT looks for acquisitions
VAR set for shopping spree days after being bought
Just days after being bought, Elcom IT is already on the lookout for its own acquisitions.
The reseller was acquired last week for an undisclosed sum by a group of investors, in what the company is calling a Management Buy In (MBI). Owner Venture Managers (OVM), a deal broking company, helped the investors to arrange the MBI, and funding was provided by Lloyds Corporate Finance.
Tony Davis, formerly managing and financial director of Elcom IT, will now become financial director, and Nick Ellis will become managing director.
“We now want to grow the com-pany both organically and through acquisitions, and Lloyds have said it is happy to help fund us. We will look in the services area,” Ellis said.
Elcom already owns a 51 per cent stake in Essant, an enterprise network consulting company, but Ellis said Elcom does not intend to acquire the company in full.
Elcom also acquired Ensign Consulting, a software asset management company, last year (CRN, 5 December). Ellis said Elcom will launch a software applications unit.
Hewlett-Packard is still Elcom’s largest vendor, Ellis said, but the Fujitsu Siemens Computers (FSC) and Sun business was growing.
Ian Snadden, director channel and SME at FSC, said change within the reseller market was positive. “VARs that are Elcom’s size are finding that they are either selling or buying and there is likely to be a lot more of this to come in the next few months.”