Cassa founder resigns

Cassa founder resigns

Cassa national sales manager, Kelvin Mulholland, will take the helm at the IT components distributor following the resignation of its founder and general manager, Chris Hill.

Hill stepped down from his position at the IT components distributor on February 4. According to a statement from Cellnet, his departure was for personal reasons.

Cellnet managing director, Stephen Harrison, said although Mulholland's job title would not change, his responsibilities had been extended to include management of the division's staff.

"Kelvin has been in the business for nine years and knows it well," he said.

Despite speculation that Cellnet would consider extending the role of IT Wholesale general manager, Daryl Tucker, to cover the Cassa business, Harrison told ARN it would continue to operate the two divisions separately.

"We want to make sure we can sell on product from one division to the next and this has happened more with the ITW and Cassa divisions," he said. "But we want to keep Cassa separate.

"The components sold through Cassa are quite different to ITW, even though we do have some cross-selling of product."

Hill established Cassa Australia in 1994. The distributor was acquired by Cellnet in July 2003. Since then, its sales had grown from $20 million to nearly $50 million, Harrison said.

"When we purchased Cassa, its main product was Asus," he said. "We still do a lot of business with them, but we have diversified into PC builds for mass retailers and the SMB market."

Cellnet had recently invested in two specially built PC build rooms in its new premises in Sydney and Melbourne specifically for the Cassa business, Harrison said.

The build rooms, which became operational this month, are part of the distributor's new company premises in both capital cities.

According to Harrison, the combined spaces are six times larger than its previous offices.

Cellnet has also begun selling products through the Cassa brand in New Zealand.

Harrison said the decision to take Cassa across the Tasman followed in the footsteps of its launch of the Cellnet and IT Wholesale brands in that market.

"It's a very buoyant market," he said. "The margins are a lot better there."

Harrison said its overall IT distribution had also experienced growth on the back of the Ingram Micro/Tech Pacific merger.

While reluctant to disclose names, he said Cellnet had picked up additional business from a couple of larger tier one players.

"Over the next six months, I think we'll see a lot more decisions being made [by vendors]," Harrison said.

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