Distributor MB Technologies` Advanced Channel Technologies (ACT) business has bought Digital Channel Solutions (DCS) for an undisclosed amount.

DCS provides digital IT accessory brands, including Eurocase, Gear4, ION, Memorex, Skull Candy, Thrustmaster and Verbatim. ACT, which has 154 staff, supplies IT consumables, IT accessories and customised printing solutions.

MB Technologies CEO Glenn Fullerton says the purchase was at a “fair price”. He says DCS is a niche provider that can be bolted onto ACT`s network, allowing it to increase its retail and channel presence.

DCS, which has 29 staff, has outlets in Kyalami and Cape Town. The Kyalami office will be merged with ACT`s new Sandton warehouse, while the Cape Town base will remain open.

Fullerton says DCS was attractive as its product offering complements ACT`s. He adds DCS` products garner a higher margin and ACT will later benefit from efficiencies.

More to come

Fullerton says the distribution space is maturing and the company is well positioned to be a consolidator and gain niche companies that improve its margin. He says the company is in talks with other players and has plans to expand further.

“The MB Technologies group is looking to further expand its product offerings and customer base through acquisition. It is, however, important to us that there is a good cultural fit with the potential acquisition targets,” says Fullerton.

ACT MD Gary Pickford says the purchase was not a “knee-jerk” as the company looked long and hard before buying DCS. “It`s not just about pushing stock and generating turnover.”

Moving north

Fullerton adds that MB Technologies is creating a unified approach to its African operations. Currently, its brands – which include Tarsus, ACT and Platinum Micro – have a presence in Namibia, Botswana and Mauritius.

Jaco Roux, who was Africa sales manager at Tarsus, will head up MB Technologies Africa, says Fullerton. He says the company wants to double revenue from the continent in the next 18 months.

Africa currently accounts for about 10% of MB Technologies` turnover, Fullerton says. However, the company will not “penetrate north at all expense,” he adds.

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