VENTURES: MB Technologies Group Acquires Digital Channel Solutions
Recent Gauteng Business News
The MB Technologies Group, though its 100% held subsidiary Advanced Channel Technologies has concluded a deal to acquire the business of Digital Channel Solutions. Digital Channel Solutions is a focused distributor of world leading digital IT accessory brands, including amongst others Eurocase, Gear4, ION, Memorex, Skull Candy, Thrustmaster and Verbatim.
Glenn Fullerton, chief executive officer of the MB Technologies Group, comments that the Digital Channel Solutions business was attractive to the Group because their product offering complements the Advanced Channel Technologies product range and allows Advanced Channel Technologies to further expand its reach into the channel and the retail market. This acquisition will strengthen the current solution offered to these markets. Digital Channel Solutions is a well established business with a long and successful track record. We are very excited about the future growth prospects and are confident that there will be a strong culture fit.
The Growth of Digital Channel Solutions
It was important for me to sell Digital Channel Solutions to a Group of the stature of MB Technologies that has a 27 year track record of success with strong market positioning, excellent management and strategic shareholders, said Richard Radue, owner and founder of Digital Channel Solutions. He adds that our expertise in the digital accessories market will fit very well with the Advanced Channel Technologies offering.
Advanced Channel Technologies managing director, Gary Pickford, echoes these sentiments highlighting that Advanced Channel Technologies has been looking to grow the business but it was important to remain patient and find a product range that complements the current offering. We will achieve good economies of scale by distributing the Digital Channel Solutions range through the Advanced Channel Technologies network. In addition, we gain Richards knowledge and industry expertise as he will become part of our management team. The Digital Channel Solutions staff nationwide form part of the deal and will be integrated into the combined Advanced Channel Technologies / Digital Channel Solutions operation.
Combining Digital Channel Solutions with Advanced Channel Technologies
The Digital Channel Solutions business will move into the new Advanced Channel Technologies distribution facility in Sandton once Competition Commission approval has been received. The Digital Channel Solutions product offering will be combined with the current Advanced Channel Technologies offering. Warehousing and distribution will be improved as the Digital Channel Solutions customer base benefits from the efficiencies of the new Advanced Channel Technologies warehouse and infrastructure.
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, concludes Fullerton.
I am excited about the transaction and the prospects it holds for Advanced Channel Technologies and the group and am confident that the respective management teams will work well together to strengthen Digital Channel Solutions and Advanced Channel Technologies offering to the markets it serves, notes Fullerton.
Business News Sector Tags: Infotech|