Micro P splashes the cash on consumables distie Advent Data
Micro P parent DCC has acquired West Yorkshire-based office supplies distributor Advent Data for £10.2m but the figure could go up depending on trading results.The electronic supplies wholesaler punts inkjet and laser print cartridges from Brother, Canon, Epson, Dell, Konica, Lexmark and Samsung to e-tailers and general IT resellers in the UK.
Talking to MicroScope, Gerry O’Keefe, Micro P managing director, said the acquisition would give it greater bulk to compete in the print supplies market."We’ve never had the scale to get the purchasing power that is necessary to compete in the consumables market," he said.The Advent brand will remain as will managing director Raj Advani and sales director Robert Barneveld who have both signed a minimum three year service agreement. O’Keefe added there were "back office synergies" but it did not plan to lay off staff.
There are, however, plans to push print hardware through Advent and O’Keefe said there was relatively little crossover with the Micro P customer base."Advent sells to over 1,000 dealers that are practically unknown to us," he added.In the last filed accounts for the year to 31 August 2010, Advent made operating profits of £3.9m on the back of revenues of nearly £130m. The distributor is centred in Leeds and employs 110 staff.The offer to acquire 100% of the share capital of Advent is inclusive of average net debt of £6.2m.DCC has paid an initial cash sum of £10.2m, equivalent to 70% of Advent’s equity value with a further cash consideration of up to £15m based on the trading results for the three periods ending 31 March 2012, 2013 and 2014.