Accessories distributor Digital Blue may be on the brink of being sold to an overseas company, according to industry sources.
A source close to the company, who did not want to be named, has told Reseller News that Digital Blue is about to be bought by a company based in Singapore.
Digital Blue managing director Jamie Cox is also understood to be leaving the company and moving to Australia next month.
While he would not comment on the possible buyout of the company, Cox confirmed he is going to Australia, but is not saying whether he will remain with Digital Blue.
“I will be going to Australia some time next month. There will be an announcement around that time,” says Cox.
According to sources, Cox has been hired by the company buying Digital Blue and will continue to work with the company, spending about one week a month here.
Cox meanwhile says Digital Blue is currently looking for about five additional staff and is also expanding to the South Island with plans to open an office in Hornby, Christchurch soon.
One company tipped as a potential buyer is Singapore-based AV Labs, whose products Digital Blue distributes in New Zealand.
According to Companies Office records, AV Labs and its Australian distributor Digital Concepts each hold a quarter of the shares in Digital Blue. However, AV Labs registered an address in Apia, Samoa with the Companies Office. The other shares are held by Hong Kong-based director Wong Wing and Aquarius Sales and Marketing of Cronulla, New South Wales.
An Australian representative for AV Labs had no comment about the possible buyout, but told Reseller News that “nothing is finalised yet”.
The most prominent brand Digital Blue represents is AV vendor Altec Lansing.
Last year, Digital Blue was warned by the Commerce Commission for price fixing, after telling Dick Smith Electronics not to advertise an iPod accessory below a certain price point.