Three in a bed makes for a happy marriage

The partners united as Data Tec UK are looking beyond the honeymoonto a successful future

The marriage of Data Guardian, Volante and Inform two weeks ago has raised questions about personality clashes and rationalisation, but with parent company Data Tec promising capital injections and support, it could be the beginning of a beautiful relationship.

The deal, worth about u4 million, brings training firm Inform, remote access specialist distributor Volante and datacoms distributor Data Guardian under the umbrella of Data Tec UK. South African networking and software distributor Data Tec has a 51 per cent stake in its UK arm, with the rest held by UK management.

Volante MD John Chapman has become MD at Data Tec UK, with sales and marketing director Richard Jackson running Volante. Clive Cooper remains MD of the Data Guardian division and Inform will still be headed by Tony Graydon. Rob Evans has been headhunted from Data Translation Networking as group financial director, and Jens Montanana, who was the catalyst for the deal, is chairman of the South African and UK operations.

As far as can be seen in such early stages, the firm looks to be built on sturdy foundations, with strong financial backing and management structures, and ambitious plans for investment, expansion and improved service. The menage a trois is already on the lookout for likely firms to join its little love-in, and is planning further distributor acquisitions and more vendor and dealer partnerships.

Montanana stressed that Data Tec UK was not starting from scratch, saying it will have a turnover of u25 million.

'The deal gives us a mature apparatus and immediate access to the channel, but they are businesses that have been constrained by capital,' he said.

'Data Tec has a market capitalisation of about u70 million, and can lay money, better support structures and clout with manufacturers on top of the specialist knowledge and channel presence that Data Guardian, Volante and Inform already have.'

The problems faced by the distribution services group, as it has styled itself, are akin to the teething troubles faced by any recently merged company. Data Tec UK will have to meld personalities, products and style while calming nervous vendors, resellers and staff.

A source close to Volante said: 'There is bound to be crossover between the two distributors and some things will have to go.'

Montanana was dismissive of this view. 'We are expanding, not rationalising,' he said. 'The three companies will stay separate, trading as divisions of the holding company. Obviously we will merge back office operations, such as warehousing, finance, and services, but this will not mean redundancies or loss of focus.'

Jackson said he had taken on five staff at Volante in the past two weeks, adding that Data Guardian and Inform were also recruiting. 'Volante didn't really have much of a back office, so we can take advantage of Data Guardian's facilities,' he said.

But other distributors were concerned how the directors of the three firms would adapt to being part of one large organisation. Ged Blackman, who was joint MD at Data Guardian with Cooper, is notorious by his absence from the Data Tec UK management line-up, having taken his share of the sale proceeds and left.

Pat Harvey, MD of DMST, said Data Tec UK faced a huge challenge in pulling the three companies and the various personalities together: 'It's a hell of a job fitting people who have always done their own thing into a more corporate structure,' he said.

Jackson, who worked at Data Guardian before setting up Volante, denied there were any personality problems within the team. 'Any difficulties were with people who have already left,' he said. 'We all get on well.

I can't see it being a problem anyway, since the whole idea is to keep the three companies divisionalised and retain focus.'

Data Connectivity MD Neil Ledger said: 'It's a good start in giving Data Tec a foothold in the UK, but there are some big product gaps in its portfolio.

It is weak in local area networking and it needs to complete that part of the puzzle before it becomes a threat.'

The expertise of Data Tec UK lies in remote access and Internet/intranet solutions. But Chapman said it would expand into Lan and specialised software products through acquisitions and vendor signings.

Data Tec UK is born of a parent with a history of acquisitiveness - the South African firm has bought four companies this year in the Internet, software and networking arenas. The firm claims 70 per cent of South Africa's Microsoft market, and 60 per cent of the Novell and Lotus Notes markets.

According to Montanana, there are no plans to move into broadbased software distribution in the UK. Instead, Data Tec UK will be looking to acquire distributors with Lan expertise, and to sign vendors selling niche communications software products.

Montanana said he had considered buying Data Translation Networking to flesh out the firm's Lan offering, but that the risks had been too great. 'There was some bolt-on value in terms of critical mass, customer base and Lan products,' he said. 'But it was haemorrhaging money and its liabilities exceeded its assets.'

The search will continue for partners to develop Data Tec UK's business and it seems it will prove the worriers wrong. Although the honeymoon isn't over yet, the marriage could see the firm proving as successful in the UK as Data Tec has been in South Africa.