What’s next for Exertis Enterprise after AURELIUS deal?

Exertis Enterprise and DCC leaders talk European expansion and strategic investment, as Exertis IT transitions to new ownership under AURELIUS

As Germany-based private equity investor AURELIUS prepares to carve out several Exertis businesses from parent company DCC, the leaders of Exertis Enterprise and DCC Technology have spoken to CRN about what’s next for the infrastructure distribution arm.

Jason Chibnall, who took over as MD of Exertis Enterprise in April, says the acquisition presents an opportunity to sharpen the focus on expertise and value-added services.

“We’re a trusted advisor to our customers, not just a company that takes and processes orders,” he explains.

“Of course, we still do that, but the real value lies in our people, their knowledge, and their deep understanding of our customers’ organisations.

“That’s what sets our proposition apart, and that’s what will continue to drive our success.

“I also intend to carry forward the significant investment DCC Technology has made, investment focused on raising corporate standards and ensuring we operate as a responsible, ethical business globally.”

Exertis IT - which includes Exertis Supplies, Exertis Ireland, Macro EV, Exertis Supply Chain Services, MTR, Hypertec, and Ztorm - will now transition to AURELIUS in a deal expected to complete later this year, pending regulatory clearance.

However, Exertis Enterprise and Exertis Cloud in the UK, but also AV and infrastructure businesses in Europe including Connect, Azenn, Amacom, and AV DACH, as well as JAM and Almo in North America, will remain part of DCC.

Chibnall highlights that Exertis Enterprise is coming off a “very strong year” and is gearing up to grow its footprint both within and beyond the UK.

“Although the enterprise business is headquartered in the UK, it has a strong presence across Europe as well.

“We’ve been growing the UK business and expanding into continental Europe.

“We also have several specialisms in North America and are rapidly building similar capabilities in the broadcast space.

“There’s no ambiguity now. DCC’s review brought some uncertainty for a time, but now we know who we are, who we report to, and we have the backing for our next phase of growth.”

The business continues to see strong demand for infrastructure technologies across enterprise, midmarket, and public sector verticals.

Clive Fitzharris, appointed CEO of DCC Technology in 2022, says Exertis Enterprise remains a key focus for the group as it shifts its wider strategy.

“We’ve significantly reduced complexity in the division.

“While that’s led to a reduction in turnover, it has had minimal to no impact on profitability or on our ability to invest and support the business.

“In fact, with greater simplification and sharper focus, we can now move faster, both in our Pro Tech businesses and in Enterprise.”

This sharpened focus is a natural evolution following the 2024’s announcement that DCC would be selling part of the Exertis business.

“It was roughly a 24-month timeline from that point,” Fitzharris explains.

“Within DCC Technology, we’ve simplified the business through the disposal of the Infotech division.

“At the same time, DCC plc as a whole is also simplifying.

“It has announced the sale of its healthcare division and set a longer-term horizon for the technology business.

“Our goal, in coming to market toward the end of that timeline, was to present a business predominantly focused on professional technologies: more solutions-led, more value-added, with a very different operating model and far less diversity than before Monday’s announcement.”

The AURELIUS acquisition marks a major turning point for Exertis IT, with CEO Tim Griffin calling it “a natural next step” in the group’s evolution.

“We are delighted to have found new owners who are committed to accelerating our growth and that of our partners through dedicated focus and investment,” Griffin said.

“I firmly believe this sale positions Exertis IT for long-term success and provides greater opportunities for our vendors, customers, and our people.”

Fitzharris acknowledges that the split presents both challenges and opportunities but insists the decision allows both sides of the business to thrive.

“We’ve had to ask: where can we create the most value for our partners and shareholders? The answer is focus,” he says.

“This gives us a much more streamlined portfolio and the freedom to invest in the areas we know are strategically important.”

M&A and long-term strategy

While there may be future opportunities for Exertis Enterprise at the end of the 24-month period, the business will remain intact under DCC for now.

“They initially said they’d review the technology division over 24 months, and that’s now moved to an 18-month timeframe,” says Chibnall.

“The first material step was the sale of the Infotech business in the UK and Ireland.

“The rest of the portfolio remains intact, and they’ll be considering their options over the next 18 months.

“But there’s nothing imminent, nothing expected to happen in the next 12 months, and possibly beyond that.”

As for further acquisitions to add capabilities, Chibnall does not rule anything out.

“We’re a very acquisitive group and we’ll continue to make value-led acquisitions, most recently in Europe.

“Recently, in April, we bought a Pro AV and IT business in the Nordics called Septon.

“We’re actively exploring multiple opportunities in enterprise across the space.

“If the right opportunity comes along, where it adds value to us, or we can add value to it, we’ll absolutely pursue it and work hard to bring it into the family.”