Data#3 readies PC dealer acquisition

Data#3 readies PC dealer acquisition


Armed with record revenues and larger than forecast net profits, QLD distributor Data#3 is hot on the acquisition trail.

The business it wants to purchase will fall into one of three types: PC dealerships, services companies or a smaller version of Data#3's own multi-faceted model, said managing director John Grant.

The hunt for a business that potentially will add more than $25 million to Data#3's current revenues is centered on Sydney because NSW has the most buoyant IT market, he said.

Grant said that acquisitions are a key component of Data#3's three year strategic plan, and that following some months of investigation he was hopeful the company would be able to acquire a compatible IT business within the next six months. "The types of businesses we've been speaking to could potentially add in excess of $25 million to our current yearly revenue".

In terms of purchase price, the least expensive option would be a PC dealership, Grant said. It would look for one that is well run, enjoys a low cost structure, is margin sensitive and commands customer loyalty.

"This is our buy-then-build option where we would enhance its service while maintaining its product and customer sides."

Higher on the price scale is a services business with sketchy product, sales and marketing focus but highly skilled technical staff and multiple technology partners.

The final option, a smaller version of itself to which Data#3 would add its own differentiates such as its SAP and Direct Magic offerings for SME customers, would command the highest initial price but would generate a larger market share in a shorter time.

Grant said Data#3's Help Desk business doubled projections to establish 45 new Help Desk sites nationally. Revenues from its services division rose 25 per cent to $11.5 million and on the SAP side, five new SME sites were secured in the past 12 months.

Follow Us

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments