Networking distributor Namlea Data Systems (NDS) has merged with electrical components distributor Cabac.
The merger will see the significantly smaller partner NDS relocate to Cabac's Silverwater premises and operate essentially as the IT/networking arm of the larger company's operations.
The new group will trade under the name of Cabac NDS. However, each company will continue to trade independently within the organisation. As part of the deal Peter Elderton, founder of NDS, will take up a position of the Cabac NDS board.
According to Penny Carangelo, marketing manager of Cabac NDS, the merger decision was based on mutual interests, and a predominantly shared reseller base.
"We have been working with Cabac for some time now, although the decision to merge was not taken until early January," Carangelo said.
Through the deal Cabac NDS hopes to leverage the networking and cabling market by integrating the NDS product line into its operations, which offer same day, and overnight delivery to resellers throughout Australasia.
The merger also signals Cabac NDS plans to more fully embrace the IT distribution market.
"IT is an area of growth at the moment - it is not slowing down as much as other industries," Carangelo said. "We are looking at launching new products in the networking and IT arena, and gradually expanding that arm of the business."