Irish storage VAD CMS Distribution has built on its partnership with Scandinavian consumer electronics specialist Newgen Distribution by acquiring a majority stake in the business. Newgen's founder shareholders Axel Djurson and Max Ellberg will stay on with the business as joint managing directors, and retain the remaining share capital. Newgen supplies key retailers in the region with a range of products. Sales in 2016 are expected to exceed €13.8m, up 100% on the previous year. CMS Distribution acquired a minority stake in Newgen as part of its acquisition of fellow distributor Widget earlier this year. That stake has now been increased to over 50%, making Newgen a subsidiary of CMS Distribution Ltd. Frank Salmon, CEO of CMS Distribution, said: "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." Newgen will be managed separately from CMS Distribution BV, the group's 100% owned subsidiary in continental Europe, which is based in Eindhoven, Netherlands.
United Kingdom: storage VAD CMS Distribution has joined forces with Widget Group, a distributor of consumer emerging technology based in the Netherlands, Sweden and the United Kingdom. This acquisition further strengthens CMS Distribution's position in the European market. Commenting on the acquisition, Frank Salmon, founder and managing director of CMS Distribution said: "We are delighted to have teamed up with Widget Group, they are experts in emerging consumer technologies with an impressive portfolio of vendors in the UK and Europe. They have a large and loyal customer base and, like CMS, they are an award winning distributor in their field. The decision to buy Widget Group was based on several inherent synergies between the two organisations, including growth plans, leverage, scale and a track record of success."
Following the acquisition, CMS Distribution will target combined revenues of €410m+ for FY’16 and now employs 250 people across the United Kingdom, Ireland and the Netherlands. CMS will continue to run the business under Widget Group's brands for the foreseeable future and Widget's leadership and management team will remain and continue to focus on the growth of the business. Mark Needham, founder and chairman of Widget Group, commented: "It's a great move for Widget as well as the vendors and customers we represent and the staff we employ. Being part of a larger, value-add distribution business brings tremendous opportunities for the future and we are excited by the next stage in the joint CMS-Widget journey."
Frank Salmon concluded: "We are changing the game in IT Distribution. We are combining scale and specialisation for our vendors and customers both in the UK and Ireland and now across Europe. We are on track with our vision to become the leading specialist distributor in Europe."
Widget to distribute Tile
Mobility specialist Widget has started the distribution of Tile, a Bluetooth location technology device, in the Benelux, Scandinavia and the United Kingdom. Tile is a Bluetooth locator and companion app that helps people find lost possessions such as keys, wallets, purses, cars, bags, luggage and more. Tile is an elegantly designed, tiny white square that pairs with a smartphone or tablet to become a homing companion for lost things. Users can simply open the app and ring any item that is in Bluetooth range or see its last known location on a map. Tile also works in reverse, allowing consumers to ring their smartphone with the push of a button on their Tile device itself even if the phone is left on silent mode. Widget's Managing Director David Elder said: "Tile is the breakthrough product in the location technology market. The retailers which have already come on board with Tile have seen very encouraging sales and we are looking forward to expanding the retail points of presence across Northern Europe." Launched in the US via a successful crowdfunding campaign in 2012, Tile attaches to everything from bikes to bags to key chains to help people locate the item if lost or stolen through a mobile app.
Sweden: British mobility and consumer electronics specialist Widget has taken a minority stake in young consumer electronics specialist distributor Sportsbud Sweden AB for an undisclosed amount. At the same time, Widget founder Mark Needham joins the board of Sportsbud. Founded last year, Sportsbud rapidly became a customer of Widget for Fitbit and other products to sell on to retailers in the Scandinavia. It also signed a distribution agreement with Pebble in 2014 which made it exclusive distributor of Pebble smartwatches in the Nordic markets. Pressured by vendors to cover Northern Europe, Widget did a first try last year, by opening a Danish subsidiary, but it seems the try was not converted as the Danish office is not mentioned anymore by the distributor. Widget also owns a subsidiary in the Netherlands, distributor NOW Mobile, since the end of 2012.
Newgen Distribution AB
Newgen Distribution AB
Mr Axel Diurson
Creation year : 2012
Cabling and connectivity
Home entertainment and consumer electronics
Telephony (analog, ISDN, mobile)