Specialist technology distributor Bluechip Infotech is rolling in fellow IT distributor DNA Connect to create a new unified distribution powerhouse in the local market.
Bluechip Infotech was founded in 2000 and specialises in providing a range of products and services, including hardware, software licensing, managed service provider tools and monthly recurring services to channel partners focused on small- to medium-sized businesses (SMBs) to large value-added resellers (VAR) and MSPs.
DNA Connect, founded in 1993, provides a broad range of services for partners focused on midsize to enterprise customers, including lead generation, partner enablement, and professional and training services.
The merger of DNA Connect into Bluechip also incorporates Ingeniq, DNA’s partner services and training arm.
With DNA Connect being rolled into Bluechip, it is understood DNA Connect is to be branded as 'DNA Connect, a Bluechip IT company'.
“The merger positions both companies to be stronger and accelerate growth by providing more solutions to a wider combination of channel partners and segments,” Bluechip managing director Johnson Hsiung said.
According to DNA Connect executive director Munsoor Khan, the two companies share “considerable” synergies.
“Both companies operate in different market segments and have minimum vendor and customer overlap so the opportunity to massively accelerate growth is huge,” he said.
“There are many examples [of synergies]. DNA’s Operational Technology group has been growing rapidly since its creation a couple of years ago. Our partners and vendors will immediately benefit from Bluechip’s national presence and warehousing.
"This group has been one of our star performers and we expect growth here to speed up even more," he added.
The new combined group will offer vendors and partners a set of services and relationships that span a wide range of technology and market segments – from small to midsize to enterprise, the companies said.
According to Hsiung, both companies will continue to operate independently until at least the end of the year.
“In the short term the absolute focus will be on maintaining our current levels of accelerated growth but also leveraging each other’s segments and services – there will be no disruption to the already excellent levels of service we both already provide our partners and vendors,” he said.
Hsiung said that he approached DNA almost two years ago and, since then, the companies had been talking and planning.
“Both of us saw the opportunity presented to each other on how this would accelerate our growth. It really was an easy decision to make,” Hsiung said.
According to Khan, both companies were trying to organically grow into each other’s markets, with Bluechip working its way into enterprise and DNA into SMB.
“When we originally met with Johnson and he explained his vision, the synergies made immediate sense as did the obvious accelerated growth opportunities for both of us,” Khan said. “COVID-19 put the brakes on our discussions but both companies did well despite this, recording record financial results.”
Hsiung noted that the staff of both companies now have greater career growth opportunities than existed before the merger.
“Both of us have really good staff retention and work hard to create great company cultures. We have no plans to make anybody redundant and likely will be looking to hire,” he said.
Additionally, the executives and senior management of both companies will remain with the combined company.
“Between us we have an exceptional group of leaders with decades of combined industry experience,” Khan said.
Hsiung said that the unified organisation will focus first on easy wins for its vendors, partners and teams, and evolve its systems and structures gradually with the least amount of disruption.
The announcement comes just days after Bluechip revealed it had struck a partnership agreement with networking device and equipment vendor Tenda to distribute the company's full range of networking and smart home products in Australia.