Dimension Data exits distribution market

Integrator looks to 'sharpen focus' with sale of Express Data business

Dimension Data has sold off its distribution business as it looks to "sharpen its focus" on core markets.

The integrator's Express Data and Express Online brands - which operate in the Australia and New Zealand markets - have been sold to Antipodean hardware distie Dicker Data. The deal, for an undisclosed sum, is subject to shareholder approval from the acquirer, and is expected to close by the end of next month.

Didata chief executive Brett Dawson claimed his firm had made a strategic decision to step away from the distribution market.

"The decision to sell the entity is part of Dimension Data Group's strategy to sharpen its focus," he said. "While the resale of technology remains a core element of Dimension Data's value proposition to clients, physical distribution is typically outsourced to specialist distributors. Express Data, a leading distributor in Australia and New Zealand, is our only distribution asset. The sale of the company follows our decision to exit the physical distribution market."

The New South Wales-headquartered firm became part of Didata when the integrator bought Com Tech Communications 15 years ago. It runs six offices across Australia, employing about 350 staff.

"Dicker Data will be gaining a great team... who have built an outstanding business and have been fantastic contributors to Dimension Data over many years," added Dawson.

The hybrid reseller-distributor model has been in the news of late, having appeared to enjoy something of a resurgence. The past five years have seen a variety of channel players hive off their distribution business, including the UK's two largest resellers: SCC and Computacenter. But in recent weeks distribution groups Westcoast Holdings and VIP Group have added to their end-user brands with the acquisition of system builders Viglen and Ergo Computing respectively.