Digiland has become a majority shareholder in eXeed as part of a restructure which will see it scale down its own operations in Australia. Under the deal, eXeed becomes Digiland’s distribution arm for branded IT products. Digiland has made an undisclosed number of redundancies as part of the restructure, and has also parted ways with managing director, Paul Kruss.
Digiland’s Australian operation now intends to focus on whitebox distribution. Digiland marketing director, James Macbeth, said the investment in eXeed, of an undisclosed sum, would see the distributor keep its name and operation, while taking over Digiland’s “branded, more commercial products.”
Vendors being handed to eXeed include Acer, Epson and Fujitsu.
The deal had “enlarged” eXeed’s distribution model, Xeed managing director, Michael Bosnar, said. “We will ensure the smooth transition of Digiland’s current reseller customers to eXeed.”
Digiland would migrate its reseller customers to eXeed, and scale down its own presence in Australia, Macbeth said.
While Digiland would maintain its points of presence across the country, both its Sydney and Melbourne operations would relocate to smaller premises.
With the departure of Paul Kruss as managing director, Digiland’s director of operations, Colin de Costa, has assumed responsibility for the Australian operation. Kruss left Digiland on Friday after a little more than three months as managing director.
Digiland said Kruss was leaving “to pursue other personal interests”.
Digiland declined to reveal how many of its staff are being made redundant.
Product managers and sales people were going, Macbeth said.
Some might be employed by eXeed, he said.