CMS Distribution swallows up Interactive Ideas

Distribution consolidation continues as storage specialist VAD buys enterprise software distributor for undisclosed sum

CMS Distribution and Interactive Ideas have come together to create what they claim is the largest independent UK and Ireland VAD.

The deal, for an undisclosed sum, saw Interactive Ideas become part of the CMS Distribution group, adding its Enfield office to the storage specialist VAD's geographical spread in west London, Harrogate and Ireland.

Frank Salmon (pictured), founder and managing director of CMS Distribution, told CRN: "We completed the acquisition of Interactive Ideas late last Friday night and we have updated all our staff.

"We have a clearly aggressive growth strategy and are looking to grow the business 20 per cent annually. Interactive Ideas is a like-minded company and as an enterprise software company its business is very complementary to our enterprise division."

He said the move would create a value-added distributor with a turnover of £166m, making it the largest VAD in the UK and Ireland.

Salmon added that the deal also adds 650 customers to CMS' database and brings 10 new vendors on board, allowing both sides to benefit from new business opportunities.

"There is no vendor crossover at all," he said.

When asked the size of the acquisition price, Salmon said it was not being disclosed.

"But Interactive Ideas is a very successful, profitable business, and has sold from a position of strength," he stressed. "One of the reasons we acquired them is that the prospects look really good."

He added that the software specialist will continue as a standalone business for the time being and there were no plans to change its name to CMS in the immediate future. "At this moment in time I don't see any risk to any jobs - if anything, we will have to recruit more people," said Salmon.

CRN understands that Michael Trup, current managing director of Interactive Ideas, will stay at the helm.

In a statement, he said: "It's a great move for my team as well as the vendors we represent. Being part of a larger, highly successful distribution business immediately and significantly expands the sales opportunities for our combined portfolios. The opportunity that lies ahead is tremendous."

Salmon added: "I'm thrilled and delighted - we have been working on this for most of the year and for CMS it brings great capability with a great team - from marketing to pre-sales and technical support. It will give our customers a lot more innovative enterprise solutions, particularly because Interactive sells leading-edge innovation solutions, rather than A-brands. It will bring a plethora of new sales opportunities to both our customers.

"And it also gives some of the enterprise vendors an alternative to the broadline or global distribution players out there," he added.