Moore predicts a little pain ahead but integration process smoother than he expected
- 30 June, 2014 14:45
Former Express Online chief executive, Danny Moore.
Former Express online chief executive, Danny Moore, has predicted there will be a few more “bumps and bruises” ahead for the integration of Express Data and Dicker Data following his resignation.
The channel veteran, who stepped down as Express Online chief executive today, after the completion of the company’s integration into Dicker Data, told ARN he had never intended to stay on, but was positive about the future of the business.
“Since the acquisition of Simms by the Express Data Group three years ago, it was always a three-year plan. That was abbreviated by the acquisition by Dicker Data back in February,” he said.
“I was always there to help with the integration of Express Online into Dicker and that job is now done. I am looking forward to taking a little break until I consider the next move.”
Moore’s career at local distributor, Simms International, began in 1998 as Finance Director, before moving into the role of Managing Director in 2001.
Since then, Moore has overseen two major acquisitions and three integrations in the Australian technology distribution industry.
In 2006, Simms acquired KH Distribution, signalling the company’s move into the Apple distribution leadership space.
Then in 2011, Simms was acquired by the Express Data group, as Moore transitioned into a CEO role with Express Online.
Moore said Dicker Data had a strong business model and a positive outlook, despite the loss of Apple following the acquisition.
“There is no doubt that there’s big difference with Dicker Data compared to a larger ED environment,” he said.
“But they are nimble, they are very intuitive, they know what’s going on.
"The Express Online business is also the first to be integrated and it’s ahead of schedule, which is very rare in a play of this size."
Express Online general manager of product marketing, Gavin Troxler, has also resigned.
Moore said he had been pleasantly surprised with the pace and quality of the integration.
“Systems are being integrated, contracts with major customers that needed to be renegotiated have been completed, all the back office stuff has been done, a number of people have been integrated,” he said.
He said David Dicker saw Apple as a marginal business.
“It was very disappointing for me to see that not go ahead after what we built up over a long period of time - to hand it to our competition.
He said there was also very different cost model at Dicker.
“It’s a very lean machine and there’s no doubt the benefits that will come from the ED acquisition will go well beyond the loss of Apple.
"I don’t think it will have a material negative impact on the overall business,” he said.
Dicker was still a traditional distributor, according to Moore.
“They have got good quality people there and the model is slightly different and I hadn’t seen that until I moved in to the business.
“If they can take the model that made them successful and scale it to the ED businesses, and I think they can do that, it will still be a clear differentiation against the other major players.
“There’s going to some bumps and some bruises and a fair little bit of pain along the way through integration process but this has gone far more smoothly than I anticipated.”
While Moore won’t be a part of Dicker Data in the future, he is by no means finished with the channel and sees emerging opportunity in specialist areas of the market.
“I think it’s a vibrant channel and it’s in fairly good shape. It’s going to be very interesting to see how the next two years unfold.
Moore said he had seen two acquisitions and three integrations over 16 years in the channel.
“I love the channel and I am very excited by some of the opportunities but they are very, varied and go anywhere from starting again, to investing into current players, to looking into a corporate environment.”
“But I’m not sitting here ready to pounce like a lot of people think I am. I am genuinely taking some time out.
“I am looking forward to only a short break of a few months while I work out what to do, but I will be lurking.”