Giant Euro VAR mulling M&A spree in UK

Belgium-based VAR claims it is considering further M&A after triple swoop earlier this year

VAR and services giant Econocom is mulling over further M&A, identifying the UK as a likely target.

In its half-year financial results, the firm claims it is "continuing targeted investments" which could see Econocom snap up medium-size companies, particularly in the UK and Germany, in order to reinforce its expertise or ramp up its overseas offering.

The redoubled commitment to M&A comes soon after Econocom snapped up three channel firms across Europe, in the UK, Belgium and France, in May this year. The €2.5bn-turnover VAR pounced on €50m-turnover Belgium audio-visual firm BIS, French consulting services outfit LP Digital Agency, as well as securing a 40 per cent stake in UK education supplier JTRS.

For the six months until 30 June 2017, group revenues climbed 5.7 per cent overall or 2.4 per cent organically year over year to €1.28bn, as recurring operating profit hit €58.2m - a 9.2 per cent year-over-year increase.

Econocom particularly lauded growth in its services segment, which surged by 10.9 per cent annually to €430m, of which 4.4 per cent was organic growth. The firm claims that it managed to win over some "major" multi-year contracts in the last 12 months.

The VAR's product and solutions business meanwhile jumped by 16.8 per cent to €246m which the firm puts down to gains in the public sector and a strong foothold in the multimedia space thanks to the BIS acquisition.

Econocom's technology management and financing arm however saw a year-over-year decline, as sales dipped by 1.5 per cent to €604m. The postponement of a number of contracts affected revenues for this segment, but Econocom expects these to be realised in the second half of the year.

Along with the appointment of Robert Bouchard as chief operating officer earlier this year, Econocom announced that it will release details of a "new strategic plan" this September. Now Econocom claims that its new strategy - named "e for excellence" - will be released on 3 October.