CMS continues acquisition spree

Firm strengthens position in Scandinavia with deal over Newgen Distribution

Distributor CMS has continued with its plans to dominate the European value-added distribution scene by acquiring a majority stake in Newgen Distribution AB.

The firm already owned a minority stake after its acquisition of Widget earlier this year, but this deal now sees CMS grab a majority stake of over 50 per cent.

Earlier this quarter, Frank Salmon, founder of CMS told CRN that he intended to become the number on technology VAD across Europe, as it prepared to rebrand the Eindhoven-based NOW Mobile to CMS Distribution BV.

The firm has already made three acquisitions – CCI, Interactive Ideas and Widget in quick succession, and Salmon revealed more were in the pipeline, claiming he expected to make an “acquisition each year”.

Axel Diurson and Max Ellberg, founders of Newgen will stay with the business as joint managing directors and retain a minority of the share capital, meaning the business will be managed separately from CMS Distribution BV.

Salmon added: “We are delighted to increase our involvement with the Scandinavian markets. CMS wants to become a significant player in continental Europe, opening up more opportunities for our suppliers and offering the benefits of scale to our customers.”