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Scansource acquires Intelisys
American POS, network and telecom VAD ScanSource has unveiled a definitive agreement to acquire Intelisys Communications, a distributor of business telecommunications and cloud services. With 2015 gross commissions of €108m, Intelisys distributes services for the main telecom carriers, cable companies, cloud services providers and technology partners through channel sales partners. ScanSource thus broadens its capabilities by entering the telecom and cloud services market with the acquisition of Intelisys. In the United States, small and medium-sized businesses spend an estimated €135B on telecom services. Approximately 10% of this market is currently served by the indirect channel, creating a large and growing addressable channel market for Intelisys and its sales partners. In addition, the market dynamics favor Intelisys' two-tier services-based business model with an expected growth of business opportunities for the indirect channel. With this acquisition, Intelisys' sales partners are better positioned to capture this benefit and have the potential to grow faster than the market. Craig Schlagbaum, Vice President of Indirect Channels for Comcast Business, added, "This next transformation of the channel is clear evidence of evolving end-user needs, as we begin to see the bundling of hardware and software with network and cloud. As our largest ‘Master Agent’ partner, Intelisys has been instrumental in helping Comcast Business build a scalable channel. With the combined strength of Intelisys and ScanSource, we expect outstanding customer and partner opportunities to result from bridging these two channels."
Intelisys provides agents and value-added resellers (VARs) with an extensive portfolio of services, support and enablement tools to sell cloud and connectivity services. The acquisition accelerates Intelisys’ ability to extend this successful model to the ScanSource VAR community. ScanSource VARs will gain access to Intelisys' robust portfolio of carefully selected, highest-quality connectivity and cloud services offerings, as well as the tools and platforms that help partners build recurring revenue streams.
Under the agreement, the all-cash transaction includes an initial purchase price of approximately €75.4m, plus earn-out payments based on earnings before interest expense, taxes, depreciation and amortization (EBITDA) over the next four years. Intelisys has demonstrated double-digit growth of net revenues and EBITDA, which is projected to continue during the four-year earn-out period. For the first full year after closing, Intelisys’ net revenues, which reflect gross commissions less payments to sub-agents, are estimated to total over €30.7m with a 45% to 50% estimated EBITDA margin.
"Intelisys is unmatched in the master agency space, and their two-tier model is an ideal fit with our culture and way of doing business. We are entering a high-growth, recurring revenue business that is complementary to our current business and represents a compelling opportunity for our VARs", said Mike Baur, CEO, ScanSource. "Since our founding nearly 25 years ago, ScanSource has effectively taken complex market opportunities and created avenues for customers to be successful. Acquiring Intelisys and their immense expertise and talent will be instrumental in helping our combined sales and supplier channels build on that success."
Founded in 1994 and based in Petaluma, California, Intelisys operates in the United States and has approximately 120 employees, more than 130 supplier partners, and over 2,400 sales partners. Last year, Intelisys was named one of the Best Entrepreneurial Companies in America by Entrepreneur Magazine for its growth, sustainability and ability to achieve lasting success. The experienced Intelisys management team will remain in place, including Co-Founders Rick Dellar and Rick Sheldon, and Co-Owner Dana Topping. Jay Bradley will continue to serve as President of Intelisys, and his senior leadership team will also remain in place. Upon completion of the transaction, Intelisys employees will join the Worldwide Communications and Services segment of ScanSource. "Intelisys' driving mission has always been to enable the growth and success of our sales partners. ScanSource shares that same set of core values. Our commitment will only be strengthened as we become part of the ScanSource team", said Rick Sheldon, Co-Founder of Intelisys. "This is an exciting time for the channel as VARs and telecom agents converge. Together, we believe ScanSource and Intelisys will become the ultimate channel company as we offer an unparalleled experience in the cloud and telecom space, including fully connected solutions for our partners."/p>
The acquisition is expected to close in the quarter ending September 30, 2016, subject to the satisfaction of customary closing conditions and receipt of regulatory approvals. Prior to the close, ScanSource and Intelisys will continue to operate as independent companies.
Comline and Prosoft sign with Showpad and Kingston
Germany: Mac specialist Comline has expanded its offer with ShowPad sales enablement platform. Showpad tool allows resellers to transform more efficiently their online leads in sales. On its side, security VAD Prosoft has been appointed by Kingston as official distributor for its cyphered USB keys in the DACH region. Prosoft will distribute these products through its offices in Austria and Germany.
New partners for ASBIS, Secnet and Softprom
Ukraine: despite all efforts from Russia to hinder economic development through war in the country, Ukraine is slowly but surely recovering, thanks to its government efforts for transparency and against corruption (albeit clearly insufficient for the time being). In the IT market, the distributors are continuing to develop, with, among others, new partnerships with vendors. Broadliner ASBIS has thus started the distribution of Samsung SSD through its reseller network1. Network and security VAD Secure Networking Distribution has launched an infrastructure as-a-service offer in partnership with MIRhosting2. Finally, software specialist Softprom expands beyond its core business through a distribution deal with NAS vendor Synology3. This partnership also covers Azerbaijan, Belarus, Georgia and Moldova (source: Komputernoye Obozrenye 1, 2 and 3).
Datastore and Distrelec sign new vendors, while Ingram Micro finds a new head
Switzerland: storage VAD Datastore has been chosen by Netwrix as official distributor for its governance solutions1. Semiconductor specialist Distrelec has expanded its offer with a selection of Texas Instruments products, including voltage regulators, protective diodes or circuit breakers. Finally, Benno Schlumpf has replaced Thomas Maurer as new managing director for broadliner Ingram Micro2. Benno was previously director of the value business for the ACH (Austria, Liechtenstein and Switzerland) region. It is yet unknown what Thomas Maurer plans to do in the future (source: IT Reseller Schweiz 1 and 2, IT Markt Schweiz).
Nimans expands networks division
United Kingdom: telecom VAD Nimans has announced a significant expansion of its Networking division as it further strengthens its 'cradle to grave' reseller service. Spearheaded by Solutions Sales Manager (Networking), Judith Addison, thousands of new products are available – such as routers and switches – from industry leading brands such as TP-Link, Netgear, DrayTek and HP Enterprise Networking. "We have developed a massive expansion of our range which gives resellers access to thousands of new product lines, as we become a major player in this market", Judith emphasised. "From WLAN, cabinets and cabling to network connectivity, UPS, voice systems and end points, Nimans covers the whole process from start to finish as part of a seamless reseller journey. We are even working on delivering a complete 'office in a box' communications proposition which encapsulates everything we do, from network connectivity right through to end points such as headsets and telephones. We can also offer our own iQ PBX portfolio which complements the huge range of solutions we've now introduced, backed by the highest service levels."
ABC Data becomes exclusive distributor of 3D Pixelio scanners in CEE
The 3D print technology takes subsequent markets by storm and 3D printers grow in popularity also among private users. Broadliner ABC Data, a leader in the modern IT equipment distribution in the CEE region and the winner of The Best Distributor of Low-Price 3D Printers and Filaments 2015 title has much contributed to the development of this market in Poland. The company has once again the opportunity to foster the dynamic growth of popularity of this technology as it is introducing modern 3D Pixelio scanners to its offering.
Pixelio is a unique device capable of transforming a modern smartphone into a 3D scanner or a 360° video camera. The scanner created by the Polish company Smart3D achieved huge success on one of the biggest crowdfunding platforms last year. Now this outstandingly versatile equipment has been introduced to the broad product range of ABC Data which has become the exclusive distributor of Pixelio in Czech Republic, Hungary, Lithuania, Poland, Romania and Slovakia. Thanks to this, the devices will be accessible to a very large group of resellers and will help in the ongoing popularisation of the low-cost 3D print technology in the whole region of Central and Eastern Europe. For ABC Data trusts not only in sales of high quality equipment, but also in educational activities for its partners.
"The Pixelio scanner will be interesting for a really large public for its simplicity of use and huge suitability. It will be useful especially to photographers, 3D printers users, museum workers, archaeologists, engineers, graphic designers, bloggers or e-commerce specialists", Radosław Jankowski, Project and Implementation Manager at ABC Data explains. "We can scan small interesting objects in 3D by installing a smartphone with the appropriate software on the arm of the device. But this is not all. The device also allows to take a high quality panorama, timelapse or a 360° video or photo, which makes it outstandingly versatile", the specialist adds.
Pixelio naturally enlarges the product range of ABC Data in which there have already been 3D printers and their supplies. This modern scanner provides spatial printer users with an enormous freedom in creating projects for 3D printing. What is also important, Pixelio is a multifunction device and can be successfully applied by users unrelated to 3D print, i.e. who take product photos or effective panoramic images.
Westcoast's supplier review targets the easy sell
United Kingdom: broadliner Westcoast has decided to review its supplier's base to specifically target those that make it easy for dealers to secure a sale. Head of mobility Darren Seward said that while the IT distributor is looking to "fill up gaps in our services portfolio", it means nothing if dealers do not understand how to sell it. "We've been reviewing the suppliers we use as part of our value add proposition", He said. "In order to make these things successful it has to be easy for everyone and we're looking for people who make the process easy for dealers to understand. They're the ones in front of the end users and they need to know how to sell a service or product. There's no point have a 20 point process or a competitive price if no one is going to use it. From a traditional telecoms market and IT reseller base we're trying to educate customers to sell a solution and give them the tools to be able to do that. It's a big challenge." Westcoast has taken a number of steps to simplify the process for dealers, most recently teaming up with Lease Telecom to offer mobile phone financing; their second leasing partnership in a year (source: Mobile Today UK).
Creative Peripherals, Modi Infosol and Sakri IT Solutions find new vendors
India: Philips has inked a national, exclusive distribution deal with broadliner Creative Peripherals (CPDPL)1. "With Creative peripherals as our distributor, we will increase our presence in the IT channel as well as in retail & corporate partners," said Uday Pratap, Business Head at Philips Signage Display Solutions. "Our goal is to continuously improve our customer experience in every aspect. Expanding our network of sales, personal support and being in proximity to our customers is a key initiative towards achieving that." Markets and Markets reports that the digital signage market is expected to reach €24.66b by 2022, at a CAGR of 6.7% between 2016 and 2022. Another research agency predicts that, Indian digital signage systems market is projected to reach €472m by 2019, at a CAGR of 25.8% during 2014-19. "The signage market is going through a significant revolution. Offerings such as enhanced customer experience, visual consistency and adaptability across multiple locations to display interactive content is increasing ROI and attracting target audience for many brands. The video walls are gaining popularity and is already a trend in various concerts, fashion shows and corporate events", said Ketan C Patel, CEO at Creative Peripherals. "Philips is one of the strongest players in electronics segment with a very good R&D team. CPDPL sees this as an opportunity to expand along with Philips and we are helping them with everything we can. Both being strong players in their respective fields, this relationship will be a win-win situation for customers and partners."
Meanwhile, network vendor Edimax Technology has appointed broadliner Modi Infosol as a distributor for Edimax and Edimax Pro range of products2. The company said that this partnership will enable Edimax to tap into new geographies, target over 2500+ channels partners and 400+ retailers pan India, substantially increasing their reach and penetration. "Partnering with established and forward-thinking companies such as Modi InfoSol is part of our strategy to seize new business opportunities. Distribution network of Modi Infosol has a great potential to reach out to last mile and serve untapped upcoming markets in India. This tie up will provide a new distribution network for Edimax Consumer range & Edimax Pro Enterprise series of products and enable SI partner as well as channel to utilize the most from best-in-class networking solutions to increase profitability and design solution using latest networking technologies", said Sanjay Joshi, Country Manager (India & Sub-Continent) at Edimax Technology. "We are delighted to partner with leading networking brand Edimax for distributing top class products to our customer base at the most competitive price range. EDIMAX's wide and comprehensive product line ups satisfy the connectivity needs of any networking architecture or application. With Modi Infosol's vast experience and man power, we hope to create huge value for customers as well as Edimax on a long term basis", said Atul Modi, Director at Modi Infosol.
After suspending the distribution partnership with ESS Distribution, Eset has announced that network and software specialist Sakri IT Solutions will be Eset's key business partner in the country3. Sakri IT Solutions will be Eset's key strategic business partner in the country and will continue to support and expand the company's channel partner network. Ravi Lakshman K, CEO, Sakri IT Solution said that the company has rolled out several channel initiatives to position Eset's offerings in the market efficiently: "As a key partner of Eset in India has opened up new challenges and new avenues for us to increase the reach of Eset in the Indian market.We plan to expand our reach by penetrating in tier 3 and tier 4 market. We are targeting significant long term growth opportunities, especially in emerging markets where AV penetration is still in small numbers. We see a huge potential for Antivirus products in the developing market like India. We are looking forward to establish alliances with distributors in such markets. We will train them and their channels and make the product available in the respective markets. We will continue to deepen our relationships with existing partners and grow our channel partner base to benefit end customer. Nevertheless, we will be even more aggressive in our market approach and penetration." The distributor has rolled out the channel loyalty program – SPISE Sales Program for Incentivizing System Engineers for Eset Retail channel partner and Service Engineers. The program is beneficial for the field engineers, channel partner employees and not just for the owners of company. "We want to take Eset business to the next level, we will be investing significant effort in the promotions of premium consumer product portfolio which is the mainstream volume market and also in the Eset enterprise security We will roll out attractive scheme and rebate programs for channel partner on the quarterly basis. This will be backed up with the competitive pricing and margin structure for Eset consumer as well as enterprise product portfolio", Lakshman added (source: Channel Times India 1, 2 and 3).
Wortmann and Novastor in the cloud
New vendors for ASBIS and MTI
Ukraine: broadliner ASBIS has started the distribution of Bitdefender security solutions through its reseller network1. Its competitor MTI has decided on its side to strengthen its video-security offer with Longse hardware platform2 (source: Komputernoye Obozrenye Ukraina 1 and 2).
Last 30 news
Scansource acquires Intelisys 2016-09-28
New partners for ASBIS, Secnet and Softprom 2016-09-28
Nimans expands networks division 2016-09-28
Wortmann and Novastor in the cloud 2016-09-27
New vendors for ASBIS and MTI 2016-09-27
ALSO distributes SMS Smart Media Solutions 2016-09-26
MoyOfis expands its partnership with Axoft 2016-09-26
Westcoast signs Lease Telecom deal 2016-09-26
A bad summer for Action 2016-09-23
100Mega distributes Kuke 2016-09-23
Redington Value partners with Pivot3 2016-09-23
Desyman plays with ThunderX3 2016-09-22
jetNEXUS appoints SCD 2016-09-22
Ingram Micro gets quiet! 2016-09-22
ALSO extends the reach of its WaaS platform 2016-09-22
Two new brands for Siener Informatique 2016-09-21
Despec loses its head 2016-09-21