Sahara Holdings, the IT investment company, has acquired the Computer Products Group (CPG) of Arrow Altech Distribution (AAD) for an undisclosed sum.
According to MD of Sahara Holdings, Atul Gupta, the move is intended as an investment in the local IT distribution market. It will also allow the Group as a whole to offer its customers a wider range of branded products than what is currently available under a single banner. "The acquisition is primarily due to competitive issues as many vendors are loathe to use the distributors appointed by their competition. The Arrow Altech CPG business, which will relocate to the Midrand area and will be renamed Arrow IT Distribution, will continue to operate separately from Sahara Holdings' other components distribution company, Sahara Distribution," he says.
Apart from making process improvements where appropriate, Sahara does not plan to make major changes to the business, which includes the retention of all existing CPG office staff. "Arrow IT Distribution will continue to be led by current GM, Bill Gradwell, and we expect it to slot neatly into the group, offering the market a wider choice of product than before," notes Gupta.
Arrow Altech Distribution MD, Philip Du Preez, is positive about the move because it will allow AAD to focus solely on its core business, which is the distribution of electronic components and the rendering of value added services. "Although this is a total divestiture from AAD's shareholders, Arrow Electronics Inc. and Altech, Arrow IT can only benefit from being part of a focused IT distribution company. I expect a certain amount of cross-pollination between Arrow IT and Sahara Distribution which should help grow the market as a whole and also Sahara's share of that market," he says.
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