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M&A in Channels Becoming a Reality

By Yogesh Gupta on Jun 21, 2011

Are the successful partner organizations ready to be acquired by larger companies?

Mergers and Acquisitions amongst vendors continue in technology world. Oracle buying Sun, Intel acquiring McAfee, Microsoft takes over Skype. The list is endless. The M & A trend is spilling over to channel community in India. Lately, private equity firms or larger system integrators are investing in established partner organizations (systems integrators / solution providers). In past three years, Avnet acquired Ontrack Solutions, Momentum Infocare was acquired by Printing and Imaging solution provider Ricoh and lately KPIT Cummins invested 50% stake in Systime (a 100% subsidiary of CMS group).

With competitive landscape and changing technology, partners need to enhance skill sets, invest in IT infrastructure and plan business strategy which requires capital. “Beyond a point, it is difficult to hold on to skilled employees, ensure business growth and raise capital. M & A acts as excellent vehicle of growth for partners to become a part of larger organization,” says Naresh Desai, GM, Avnet Technology Solutions India.

M & A solves the crucial issue of finance stability and accelerate business plans of acquired partners. Sanjay Agarwal, Director, Momentum Infocare agrees, “Ricoh India’s national presence, brand value and our IT expertise will certainly help merged entity grow much faster and expand quicker in solution provider space.”

  • Page 1 : M&A in Channels Becoming a Reality
  • Page 2 : The Synergy Factor
  • Page 3 : Merits Of Partners
  • Page 4 : The Good Indication

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