Agate and Prion look set to complete a $300 million merger that will catapult them into the IT distribution big league, according to ARN sources.
Agate yesterday announced it had completed a much smaller acquisition of Advance Pacific Peripherals, however it is the possibility of a merger with Prion that really has channel tongues wagging.
"Agate has a stated policy of growing through acquisition. We have purchased Advanced Pacific Peripherals but any talk of an acquisition or merger with any other party is at this stage pure speculation," Agate managing director Hugh Evans told ARN.
Prion managing director Michael Bosnar refused to comment.
However, ARN sources indicated that the two distributors are deep into negotiations. If they do come together it will create a $300 million distributor, which would place it as one of the top five distributors in the country in terms of revenue.
Prion earlier this year was courted by international giant CHS, however doubts surrounding the financial soundness of CHS after it reported disastrous financial results soured those negotiations. Prion is part of the AAG group of companies, which also owns resellers AMS and NetBridge.
Agate, which has deep pockets due to strong South African backing said yesterday that Advance Pacific Peripherals would be integrated into Agate.
"It is a tremendous business fit," he said. "They have a very strong focus on the Apple Macintosh market and they have some agencies which we have a very definite interest in it."
Agate will retain all Advance Pacific Peripherals staff, Evans said.