Comms-care buy was no copycat move, says Ingram boss
'I think what we've done here with Comms-care is at a significantly different level any one of our competitors in the UK has taken' - Brent McCarty talks CRN through rationale behind Ingram's move into channel services
Ingram's purchase of Comms-care is at a "significantly different level" to acquisitions other distributors have made in the channel services space, according to its UK boss.
The world's largest IT distributor last week announced it is acquiring UK services outfit Comms-care in a deal analyst Megabyte estimates was valued at £30m.
Although the acquisition comes in the wake of rival distributors Exclusive Networks and Westcon buying UK channel services firms, Brent McCarty, UK executive managing director at Ingram (pictured), told CRN he did not see Comms-care as a comparable deal.
"I think what we've done here with Comms-care is at a significantly different level [to anything] any one of our competitors in the UK has taken," he said.
"We are one of the largest distributors in the country and we've made a big investment in bringing on what we think is the premier channel service provider. Comms-care's reputation is very strong in the market and [Comms-care managing director] Ben [Davies] and his team have made a significant investment over the years to bring scale to that.
"When you combine what Comms-care and Ingram do, I think the value proposition is substantially different to what some of our competitors have done in a more conservative way."
Ingram and Comms-care had worked together for "a number of years", and began talking seriously about a year ago, Davies (pictured below) revealed, adding that he and his team were committed to staying on at the £26m-turnover firm.
"In terms of the management team within Comms-care staying on, we've really not put a timescale on it," he said.
"Obviously there are some exciting incentives over the next few years but what's important to Ingram is it's not just buying a business, it's buying a team of people. That's exactly what we are - a business that has grown through selling people, not product. I am excited to be part of the opportunity it brings."
McCarty said the acquisition fits into Ingram's UK and global strategy to invest in its Advanced Solutions portfolio.
"You can do that by bringing certain vendor portfolios on line or potentially acquiring other distributors to participate in that value space, but I really believe the best opportunity is to bring a services portfolio in that area that focuses specifically on channel customers," he said.
Comms-care represents the "tip of the iceberg" when it comes to Ingram's aspirations for offering the kind of pre-sales support, configuration, professional, maintenance and managed services it provides to the channel, McCarty said.
"We know there are literally billions of pounds of service revenues that transacts in the UK overall," he said. "I really think with a company like Ingram coming behind Comms-care and investing in those capabilities, we should be able to go and capture significantly more opportunities."
About 400 resellers currently work with both firms, with an "identical number" working with one but not the other on each side, McCarty said.
Comms-care will take on the brand of 'Comms-care, an Ingram Micro company', McCarty added.
Although Ingram will search for synergies around stocking locations, McCarty vowed it will not make any changes that "upset the apple cart".
"We don't intend on making back-office or front-office changes. All we're going to do in my opinion is invest," he said.