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IBM expects $2bn from GES distribution deal

IBM expects $2bn from GES distribution deal

IBM signed Singapore-based GES International as an IBM Technology Group partner late last week in a deal that IBM said had the potential to generate $S3 billion ($A2.7 billion) in sales over the next five years.

GES plans to use its existing Digiland e-commerce engine to promote and sell IBM's disk drives, liquid crystal displays, semiconductors and other components across the Asia-Pacific region and Australia, the companies said in a statement.

Under the Digiland brand, GES has offices in Australia, Hong Kong/China, India, Indonesia, Malaysia, the Philippines, Singapore, Taiwan, Thailand and Vietnam, with more than 10,000 dealers in the network, the company said.

IBM will continue to benefit from GES' Asia-Pacific distribution networks, and seek new growth opportunities through expanding Technology Group product offerings and reaching new geographic and customer segments, IBM said in the statement. IBM will also collaborate with GES in expanding the technical service and support provided with Technology Group products.

GES is Singapore's fourth-largest electronics company by market capitalisation and one of the country's pioneers in business-to-business online selling. Revenues from its Digiland e-commerce business reached $S22 million per month within six months of starting up.

In August, GES invested $S20 million in a joint venture with Shanghai East China Computer (ECC) to manufacture and distribute personal computers and peripherals in China with a target of $S1.5 billion in turnover over the next three years.


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