Exertis rumoured to be in talks with Hammer

£150m storage distributor Hammer could be broadliner's next purchase, according to channel rumour mill

Acquisitive distributor Exertis is in talks to acquire storage specialist Hammer, according to multiple sources.

Hammer is believed to have met with various parties in recent months, but multiple sources have told CRN they have heard Exertis is close to landing the £155m-revenue Dell, Intel, Western Digital and Overland distributor.

Both firms have declined to comment but if a deal comes to fruition, Hammer would represent the largest in a string of acquisitions for Anglo-Irish giant Exertis, whose cash-rich parent DCC Group was recently promoted to the FTSE 100.

Wireless distributor Siracom, Apple specialist Computers Unlimited and security VAD Cohort are among Exertis' recent conquests.

Hammer is one of the last remaining sizeable homegrown distributors, generating an after-tax profit of £5.38m on revenues that rose 16 per cent to £154.75m in its financial year ending 31 January. The UK generated £85.3m of the total.

One source remarked that Hammer, which also operates in the Nordics, Benelux, Germany, France and Italy, has enjoyed a period of growth and would be selling at the "top of the cycle" in the event it reached a deal with Exertis.

Although Exertis and Hammer share some vendors, including Dell and Datacore, Hammer would dramatically expand the size and scope of Exertis' storage business, another onlooker remarked.

"Exertis is more components storage and Hammer has a solutions business which would give them much more. It would be a very logical fit," they said.

Exertis' revenues rose 3.9 per cent to £2.44bn in its last financial year ending 31 March.

Exertis' UK and Ireland managing director Gerry O'Keeffe said: "We never make any comment with regards to either potentially confirming or denying rumours."

Hammer managing director James Ward also declined to comment.