Reay exits as Exclusive Networks logs growth
Former Arc boss Stuart Reay leaves the distributor on a high as 2010 turnover rises by a third
Exclusive Networks UK managing director Stuart Reay has announced his retirement from the industry, as the VAD unveiled a 32 per cent hike in annual sales.
The distributor, which recently rebranded from Arc Technology to take on the name of its French parent, saw turnover rise from £16m to £21.2m in 2010.
Reay (pictured) has headed up the firm since Arc performed a second MBO in 2007 and oversaw its majority sale to Exclusive Networks in mid-2009.
He has now sold his remaining ten per cent stake to the parent company.
Reay said he was “going out on a high”, despite the recent loss of its McAfee franchise.
“Post-McAfee, the business is in good shape,” he told ChannelWeb. “We grew 32 per cent last year and our target this year, excluding McAfee, is to grow by nearly 50 per cent. Vendors such as Fortinet and SafeNet have come good for us and our gross margin retention is up 50 per cent post-McAfee.”
Olivier Breittmayer, chief executive of Exclusive Networks, said Reay's management duties would be shared between sales director Chris Walsh and finance director Robin Draper.
Exclusive's stake in the UK subsidiary would rise from about 66 to 76 per cent, he added.
"Stuart did a very good job for us and, even with McAfee stopping the contract in the middle of the year, achieved the target [of 30 per cent growth]," said Breittmayer.
Having spent 18 years in value-added distribution, Reay said it was the right time to take a breather from the industry and devote more time to his hobbies of growing vegetables and cooking.
He said he had been gearing up to retire since last April, when he turned 50, and hit the earn-out requirements built into the Exclusive deal in September.
“I have signed a two-year, non-compete agreement and have no intention of going against that,” Reay said. “I have nothing but praise for Olivier and Exclusive Networks and if I enjoy my retirement, I won’t be back.”