Digiland stalks Aussie distributors

Digiland stalks Aussie distributors

Distributor, Digiland, has been talking to several local distributors it would like to acquire as a means to achieve its aspiration of becoming one of the top distributors in Australia.

In an interview with ARN, interim country manager, Khoo Teng Liat, said that Digiland's growth aspirations in Australia would be fuelled by a combination of organic expansion and acquisition.

He confirmed that the Singapore-based company had been in talks with prominent HP channel partners Dicker Data and eXeed.

"Despite a few problems at the moment, we still have a very strong ambitions for Australia," Khoo said. "We want to become a top two or top three distributor in this country. Acquisition is an important a part of the [growth] strategy and we are always open to good acquisitions. We realise that you cannot always grow organically.

Khoo said: "Yes, we have spoken to eXeed" but insisted that it was "not just a matter of acquisition" that was discussed with the Melbourne- based sales and marketing operation.

"There is a lot of partnering we can look at with them," he said. "eXeed has exhibited certain strengths in operations that we value and frankly we are looking at them beyond Australia. We hope to work with them along those lines."

Khoo also said that serious discussions had been initiated with Dicker Data and that Digiland had been very interested in the Sydney-based distributor.

"We also looked at Dicker but we have not come to an agreement based on a number of things," he said. "One was price and another was how well it could fit into our overall business but everything is always open to negotiation as far as we are concerned."

Khoo said that both negotiations had stalled but emphasised that the books weren't closed on either potential deal.

"It is not definitely going to happen but neither is it definitely not going to happen," he said.

Managing director of Dicker Data, Fiona Dicker, said the above quote from Khoo was "very appropriate".

"I couldn't have said it better myself," Dicker said. "Never say never. You never know what could happen. Yes we did have initial discussions but, at present, there is definitely nothing happening there."

Managing director of eXeed, Michael Bosnar, also confirmed that he had been in discussions with Digiland executives about a possible acquisition.

"eXeed has had conversations with Digiland about possible opportunities within Asia, around our IT systems software," Bosnar said. "There are no immediate plans in place for eXeed to do anything with Digiland in Australia or New Zealand."

For more on Digiland, see the full story in this week's ARN (due out 9th April) and look out for a full length interview with Khoo in next week's ARN (due out 16th April).

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