Synnex weighs up acquisitions

Synnex's managing director says it will consider a merger or acquisition with struggling Queensland-based distributor, Cellnet.

Kee Ong said the company had shifted its focus from organic growth to mergers and acquisitions this year and was actively pursuing opportunities which could add to its product lines and customer base.

"Put it this way, our strategy is not limited to Cellnet. We're in the middle of doing a study on which distributors we could potentially partner with," he said. "Whether we strike a merger or acquisition however, depends on whether we see something that can contribute to the growth ratios we are expecting in the next couple of years.

"The distribution landscape in Australia is changing - you have only a few big guys on the right-hand side, then on the left there are a lot of smaller wholesalers."

Ong said Cellnet's IT distribution business could tie in well with Synnex's own. The ASX-listed distributor's business accessories (communications) portfolio was also an area Synnex looked to expand in but did not yet have much of a presence, he said.

"There's no such thing as a perfect match," Ong said. "IT distribution is a very tough business. You need to have the structure right, logistics, people - all of it.

"If the speed of consolidation in the channel gets faster, we could grow anyway, as long as we continue to do the right things."