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Exclusive Group transforms leadership team
2017-04-25
Network and security value distribution group Exclusive Group has restructured the business to exploit continued global growth and opportunities with two key promotional appointments. Julien Antoine, currently Group Director of Global Operations is taking the new position of VP of EMEA while Will Smith, currently Group IT Director increases his scope to become Group CIO. Julien Antoine's new remit as VP of EMEA recognises the need for increased scale and support to the Group's largest operating region, enabling the structure to flex and adapt to the challenges of a fast changing billion euro business unit. The promotion of Will Smith as CIO, recognises the importance of the Group’s digital transformation and the significance of IT and data intelligence in this journey. These enhancements to Exclusive Group’s leadership team complement the recent high-profile appointments of Stéphane Duplaix as Director of Strategic Global Alliances, and David Ellis as Group Director of Global Services. The senior leadership team now benefits from a wealth of successful entrepreneurialism, diversity and know how in building a highly agile global business structure, designed to deliver local value. "Our long-term success has always been centred on the ability to anticipate and adapt to disruption without diluting any of our value, and these important new positions will safeguard these unique strengths as we scale to new levels", said Barrie Desmond, COO of Exclusive Group. "Julien and Will bring huge energy and talent to the team and are fully committed to our VAST mission. These moves also recognise that we need to transform ourselves as well as transforming technology consumption and distribution if we are to maintain our disruptive position." "We are the only major VAD to be headquartered in Europe, and EMEA will always remain an important part of our growing global operations", said Julien Antoine. "Our value-adding principles are absolutely central to our continuing market relevance and our future growth throughout the region. There are exciting opportunities ahead as we continue to expand our services capabilities as well as market presence for Exclusive Networks and BigTec." "The Group IT function has doubled in recent years, making us well-positioned at the forefront of digital disruption to ensure we are creating value internally, and for customers, partners and vendors", said Will Smith. "Customer requirements are constantly evolving and we must continually address these while remaining efficient and easy to work with. I firmly believe that if you are not disrupting then you risk being disrupted."

Tech Data completes acquisition of Avnet's Technology Solutions business
2017-04-20

American broadliner Tech Data has completed its acquisition of the Technology Solutions business from its competitor Avnet. The combination creates a premier global end-to-end IT distributor with unmatched capabilities and the most diverse solutions from the data center to the living room. "This is a momentous day in our company's history and we are excited to welcome our talented colleagues at Technology Solutions to the Tech Data family", said Bob Dutkowsky, chief executive officer of Tech Data. "Our combined company is perfectly positioned at the epicenter of the IT ecosystem—with the scale and scope to serve dynamic markets throughout the world—giving our customers access to an end-to-end portfolio of IT solutions and efficiently bringing our vendors' products to new customers in more markets. Our organizations' common cultures, shared values and commitment to providing a world-class customer experience will serve as the foundation for the new Tech Data. Together, we will be an even stronger company, capable of doing more for our channel partners than ever before. We remain confident that the acquisition of Technology Solutions creates a winning combination for our customers, vendors, and shareholders, as well as the employees of both organizations."

The addition of Technology Solutions significantly broadens Tech Data's value-added distribution business (aka Azlan), increasing the company's ability to help its partners capitalize on next-generation technologies while enhancing its go-to-market capabilities with complementary skills, expanded vendor relationships, and new customer sets. The combined company has a larger and more balanced geographic footprint, including a presence in the Asia-Pacific region, a new market for Tech Data. The company has operations in 40 countries, with 14,000 employees serving approximately 115,000 customers in more than 100 countries. The company also announced its global executive leadership, as well as several new regional and global roles. Reporting to CEO Bob Dutkowsky are:

  • Chuck Dannewitz, executive vice president, chief financial officer
  • Rich Hume, executive vice president, chief operating officer
  • Beth Simonetti, executive vice president, chief human resources officer
  • John Tonnison, executive vice president, chief information officer
  • David Vetter, executive vice president, chief legal officer
  • Reporting to COO Rich Hume are:
  • William Chu, president, Asia-Pacific
  • Jaideep Malhotra, president, Global Computing Components
  • Joe Quaglia, president, Americas
  • Patrick Zammit, president, Europe
  • Els Demeester, corporate vice president, Integration
  • Michael Urban, corporate vice president, Strategy, Transformation and Global Vendor Management

In Europe, Tech Data has also announced its European Executive Board, which will be led by Zammit:

  • Alain Amsellem – senior vice president and chief financial officer, Europe
  • Michael Dressen – senior vice president and regional managing director, Germany and Austria (a region where Barbara Koch, Managing Director TD Azlan Germany & Austria, becomes manager of both Azlan and Avnet TS local offices)
  • Jonas Elmgren – senior vice president and regional managing director, GEO (that is, other European countries where Tech Data operates: Bulgaria, Croatia, Czech Republic, Denmark, Finland, Hungary, Italy, Norway, Poland, Portugal, Romania, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland and Turkey)
  • Andy Gass – senior vice president and regional managing director, United Kingdom and Ireland (a region where Rob Tomlin, Managing Director TD Azlan UK, becomes manager of both Azlan and Avnet TS local offices)
  • Pascal Murciano – senior vice president and regional managing director, France
  • Miriam Murphy – senior vice president and regional managing director, Benelux
  • Stephen Nolan – senior vice president, Broadline, Mobile and Services
  • Johan Vandenbussche – senior vice president, Operations
  • Graeme Watt – senior vice president, Value (includes the combined businesses of Azlan and Technology Solutions, specialist brands Datech and Maverick, along with Tech Data Cloud and Tech Data Smart for IoT)
  • Simon England – senior vice president, Next Generation Technology (includes cloud, big data – analytics and cognitive, IoT, security, education and services)
  • Carlos Arcusa – vice president, Human Resources
  • Michael Fischermanns – vice president, Information Technology
  • Hugo Graça – vice president, Global Computing Components EMEA
  • Roman Rudolf (former MD of Avnet TS in Germany) – vice president, Integration

Financial Terms

The total purchase price at close was approximately €2.35 billion (subject to certain post-close adjustments), including €2.17 billion in cash, and 2,785,402 shares of Tech Data stock, representing approximately 7.3% of Tech Data's shares outstanding (after issuance of the new shares). Tech Data financed the cash portion of the purchase price through a combination of €900 million from its recent public debt offering and €900 million of bank term loans, and the remainder from drawings under other credit facilities and cash on hand. The transaction is expected to be significantly accretive to Tech Data's non-GAAP earnings per share in the first full year. The company expects to achieve annual cost savings of approximately €90 million within 24 months, with one-time costs to achieve these cost savings expected to be approximately €135 million.

Analog Devices selects Arrow as Strategic Global Distribution Channel Partner
2017-04-19

Analog Devices has selected semiconductor specialist Arrow Electronics as its strategic distribution channel partner operating globally. Analog Devices will retain its current regional distributor network but will employ Arrow as its sole global distribution channel partner. The move is aimed at enabling a deeper level of support and greater breadth of services for Analog Devices' customers, who under this new and simplified structure will have the ability to leverage a strong, focused channel team, and draw on a comprehensive suite of end-to-end support services ranging from design and prototyping to logistics support.

"Analog Devices continues to invest on behalf of our customers, including expanding our direct sales team and, today, strengthening our channel operations by deepening our engagement with Arrow", said Martin Cotter, senior vice president, Worldwide Sales and Digital Marketing, Analog Devices. "Arrow's impressive ecosystem of technical sales and marketing, full product lifecycle solutions and logistics services enables Analog Devices to transform its channel strategy from a transactional focus to a strategic one. We are excited about the possibilities of this closer relationship for all of our customers."

Arrow has been one of Analog Devices' key channel partners for decades, providing specialized services and expertise ranging from global supply chain and logistics support to full product lifecycle design and production for Analog Devices' extensive portfolio of high-performance analog products, including data converter, signal conditioning, RF and microwave, power, DSP, and sensor ICs.

"Arrow has enjoyed a long and successful relationship with Analog Devices, and we're excited to see the innovative new technologies our enhanced collaboration will bring to market", said Andy King, president of Arrow's global components business. "Working together, our two companies can leverage the breadth and depth of Analog Devices' product portfolio and Arrow's end-to-end, full-product-lifecycle capabilities to help solve our customers' biggest analog and mixed-signal challenges, including those in the burgeoning Internet of Things market.". In the EMEA region, Analog Devices products are available through Arrow offices in Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Israel, Italy, the Netherlands, Norway, Poland, Portugal, Romania, Russia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, Ukraine and the United Kingdom.

Arrow ECS named a strategic global distributor for new Dell EMC Partner Programme
2017-04-12

Infrastructure VAD Arrow ECS has been named to the list of key global distribution partners for Dell EMC's new integrated Partner Programme. "The Dell EMC programme offers Arrow's global IT reseller ecosystem great opportunities to deliver enhanced customer value and increased profitability", said Sean Kerins, president of Arrow's global enterprise computing solutions business. "Arrow is proud to collaborate with Dell EMC on this new channel programme, which combines the best of the legacy Dell and EMC partner programmes."

The new and integrated Dell EMC Partner Programme was built on channel partner feedback and embodies core tenets of simplicity, predictability and profitability. It includes a distribution-specific track with comprehensive benefits and will provide Arrow's global ecosystem of value-added resellers (VARs), managed service providers (MSPs) and system integrators with generous rebates focused on profitable behaviours; one partner portal with single sign-on and one-deal registration; simplified training; market-aligned targets and much more.

"Distribution is key to helping our partners deliver for their customers", said Jim DeFoe, senior vice president, Global Distribution, Dell EMC. "Arrow ECS has been a strong partner to both Dell and EMC for several years. As we launch the newly combined Dell EMC Partner Programme, we look forward to expanding this collaboration and maximising the value of distribution for our joint partners."

Personal 3D Printer market moves closer to channel in 2016 while industrial market moves further away
2017-04-03

The go-to-market strategies of 3D-printer vendors worldwide have continued to evolve and change as more personal/desktop printers were sold via indirect channels in 2016 than in the previous year. At the same time, more high-end industrial/professional devices were sold directly to end markets by manufacturers, according to data released today by CONTEXT, the IT market research company. "Often lost in discussions about the 3D Printing market, is how important the go-to-market ecosystem is to its success", notes Chris Connery VP for Global Analysis at CONTEXT. "As the market grows, so too will distribution channels evolve."

CONTEXT data shows that 64% of all global revenues in 2016 from personal/desktop 3D printers – largely those selling for under €4,500 – flowed through non-direct channels (excluding retail), compared with 61% the previous year. Broadline retail saw its share fall from 17% in 2015 to 11% in 2016 as vendors shifted their near-term focus from pure consumers to the educational and professional markets. Direct shipments, including those from crowdsourced efforts such as Kickstarter and Indiegogo, saw a slight increase with 21% of global Desktop 3D Printer revenue being through this route, up from 20% a year ago.

In the Industrial/Professional 3D Printer segment – which includes printers from $10K to over $1M – the market saw revenues shift to the ultra-high end as 3D metal printers continued to gain traction. Metal has seen a surge in recent years as printers capable of printing in these materials make headway in the manufacturing sector, moving away from just prototyping, which is where many plastics-based printers are still used. Metal 3D printers typically have very high prices (€900k+) and are quite large, often taking up a sizable amount of a factory floor, and thus do not lend themselves to being sold or distributed via indirect channels. On the back of this, the Industrial/Professional market saw 40% of the revenues generated from printer shipments in 2016 flow directly from vendor to end customer, up from 31% a year ago.

The major indirect channel for sale of industrial/professional printers is through single-tier specialized distributors dedicated either to 3D printing and CAD or to a specific given vertical market such as jewelry or machining. Sales through these accounted for 57% of global revenues, down from 65% a year ago. Going forward the industry is set to change once again marked by the continued refocus/defocus on the desktop segment by industry leaders Stratasys and 3D Systems, the continued rise of XYZprinting, the emergence of new vendors like Monoprice and shipments against successful Crowdsourced efforts all impacting the global go-to-market channel distribution landscape. On the industrial/professional side, the channel landscape will be affected by the entrance of channel-centric HP, the continued progression of EOS, the emergence of GE's new company GE Additive and the advancement of metal 3D printing.

 

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