Arrow: We will not dilute Computerlinks' value

Distributor pledges not to tinker with cost-of-sale or value-add structure of Computerlinks as it nears completion of integration process

Arrow ECS claims it can retain – and even increase – the value-add offered by Computerlinks after completing the bulk of its integration of the security distributor.

Arrow closed its €230m (£184m) acquisition of Computerlinks in October and has now concluded all the customer-facing integration work, with the Computerlinks brand disappearing at the end of April. The final integration tasks involving IT systems and tax and legal concerns will be carried out towards the end of the year.

Talking to CRN, Arrow ECS EMEA president Laurent Sadoun (pictured) brushed off concerns that Computerlinks' value would be diluted now it is part of a giant, US-based distributor answering to Wall Street.

Sadoun pointed out that margins vary across Arrow's business and that its existing security and networking business, which CRN understands turned over about €400m in Europe pre-merger, had a very similar cost and margin structure to Computerlinks before the union.

"We have no plans to change the cost structure or the level of value we provide and I would even say we will enhance it, with the scale and synergies we can bring to customers," he said.

"We intend to get a good leverage of this acquisition and increase the level of value."

This additional value will come in the form of Arrow investing to ensure its resellers are positioned for how the market will look in five years' time, Sadoun explained. Cloud, as well as Arrow's new Solution Station, would be two examples.

As previously reported, several of Computerlinks' top management figures have been handed top-level roles at Arrow ECS' enlarged Networking and Security arm. Sadoun emphasised that staff attrition and redundancies resulting from restructuring activities had been "no more than usual", meaning the vast majority of Computerlinks' 800 staff remain in place.

All of Arrow ECS and Computerlinks' physical UK locations, bar one tiny training centre in the city, also remain in place. This means Arrow's networking and security business operates out of Newmarket and Nottingham.

"I cannot say we will not look at this, but as part of this integration we didn't identity the need to move locations," he said.

"We are very happy with the enthusiasm with which Computerlinks people joined the new Arrow family," Sadoun added. "The Computerlinks business across Europe is performing as we expected when we acquired it."