An In-depth Analysts Of Carolina Wholesale's Acquisition Of Digitek Carolina Wholesale Group Acquisition Of Digitek, What does this mean for the Dealer & VARS? By Patrick Gavin Church.
First off congratulations to both parties Mr. Larry Hunnicutt and Mr. Paul Martorana who both have long histories in surviving and excelling in maturing industries. CWG still sells a lot if business machines and supplies through Monroe business systems and yes we are talking about printing calculators and supplies and Digitek has its roots in back up media and is still a marketer leader in that space while over the last few years has invested heavily in the MPS and workflow process and is heavenly intrenched in the GOV space.
As our industries and all brick and mortar companies try to compete with Internet retail and the direct to consumer model such as Alibaba, Amazon , Newegg, Walmart,Jet.com and as we see that space continues to consolidate and everyone is trying to create a better touch it has become a challenge for distribution and dealers to stay completive and compete.
On the surface their are some obvious over laps such as warehouse space and personnel which should see integration and added value benefits to the dealers as both companies had tier 1 relationships that did not over lap such as Xerox, Canon, Lemark, Epson so this is good for the dealer and VAR along with some of Digitek's Dealer value added solutions such as the white box solution should prove well for CW and Arlington. Along with the investment that Digitek has made in its overseas call center should prove valuable to all parties.
The real question everyone must be asking is what about the compatible business and vendor relationships ?
Again little or no overlap and should be good for both customer bases. Digitek has a history of not using any aftermarket Chinese product where that is not so for CW, Arlington and neither was sourcing from industry leading giant who recently valued their company at 1.5 billion out of Chicago. Which should be good news to a EU manufacture or bad news if CW goes down a different path. Digitek has had great success with a semi exclusive manufactured ( only 2 companies ) color product it markets under its premium brand that CW and CW, Arlington now has access to along with the volume of Lexmark compliant product were Digitek has had success in the GOV space and its customer base with that product. So in short this is a good merger were synergistically two conservative people and companies should be able to add good or better value to both customer bases and stay competitive. And let's not forget welcome back home to Digitek VP of Sales Al Carrol to CW and Arlington.