Niche value added distributor Chips and Bits, has announced the acquisition of Computer Enterprises Australia (CEA) has taken effect as of last Monday.
Perth based CEA is a specialist distributor of the Umax range of scanners and has developed a healthy Apple distribution business over the last 12 months.
According to Chips and Bits business unit manager Scott Carlile, acquiring the business of CEA will provide a 25 per cent boost to the company's revenues, while adding to its specialised product range.
While there were some staff redundancies as a result of the buyout, Carlile claimed that Chips has retained all key sales product and technical people including Mike Owen as the Umax business manager and Bruce Macbryde as Apple business manager.
He added that approximately half of the CEA personnel had been retained by Chips, with most of the remaining former staff members already placed.
"By bolting CEA on to Chips, we have a better product range and access to a wider channel market, including the Apple resellers," Carlile claimed.
He added that the Umax scanners ranged from the low cost through to professional products and was particularly strong in the mid to high end market. "The product mix is well suited to our value added distribution model," he said.
Premises have already been merged, with the company operating out of the former CEA offices in Perth and Sydney, and the Chips offices in Melbourne Adelaide and Brisbane.
Chips and Bits' other products include Viewsonic, Diamond, Xerox, Kyocera, Kodak, Yamaha, Teac and Agfa.
The new entity will be known as Chips CEA and is part of the IT&e GroupChips CEA (03) 9696 1911