Victor Aghtan, the managing director and owner of distributor Westan, has continued his expansion into higher value products with the acquisition of a small lifestyle products business called QTD.
According to Aghtan, the deal was completed with a cash transaction for an undisclosed amount which secured him 70 per cent of the company that is also known as Quality Technology Distribution.
DVD manufacturer Nintaus owns the other 30 per cent of QTD.
Aghtan described the company as "only a very small operation" that distributed digital cameras, DVDs, plasma screen TVs, speakers and other lifestyle products. However, the significance of the deal should not be underestimated and he wants to expand the company rapidly.
"I want to position myself to be involved with the converging environments of lifestyle technology and information technology," Aghtan said. "There are many synergies with my other business interests. We really need to be in the lifestyle market as well as IT
"Notebooks for instance are really in the lifestyle market already as are PDA phones. Eventually, I think there will be all sorts of other products that will straddle both lifestyle and IT."
While the company will remain independent of Westan, there will be information sharing between the two with both benefitting from the customer relationships of each other. Meanwhile, the national infrastructure of Westan will be leveraged to grow QTD out of its Victoria-only focus.
"I will take the company national," Aghtan said. "It has dealings with national-based retail companies who are demanding national based fulfilment and support services and QTD has been having a hard time fulfilling that function."
QTD currently employs "about 12 staff" and has an annual turnover of "about $15 million" according to Aghtan.
He said that all staff would be retained and that there was likely to be more employed as the business expanded into other states.
The company distributed "no tier one brands" with products sourced from suppliers in China, Hong Kong and Taiwan, Aghtan said.
It sells the Nintaus brand of DVD players which are available through JB Hi-Fi stores. It also has agencies for the Sonic brand of TVs, Monsoon speakers from Canada and about a dozen other suppliers.
Aghtan said that the range of products offered to QTD's retail and channel partners would be "boosted substantially" in the next 12 months.
For more on this story, see this week's issue of ARN.