Menu
Provenco builds on market position

Provenco builds on market position

AIMING to become a major player in the Australian distribution market, Provenco has forged ahead with its acquisitions and secured two further distributors.

The business technology supplier paid A$18.6 million for Melbourne-based Vantex and Christchurch-based Vantex Wholesale Distributors last month. Both companies distribute POS, barcoding, mobile and wireless computing products from vendors that include Epson, IBM, Netcomm and I-mate.

Provenco chief executive David Ritchie says the most recent acquisition positions the company as the region’s largest distributor of mobile, wireless and retail technology.

“This is a low-risk way of entering Australia. When we acquired Transtech Distributors 18 months ago it was just the start of the journey,” he says.

Provenco subsidiary Transtech has the Australasian distribution rights for Symbol scanning products.

In January Provenco purchased Sydney-based distributor Javelin Systems and Transtech appointed it as the Australian distributor of Symbol. Ritchie says this worked so well for Provenco that when the opportunity came to acquire Vantex the company jumped.

“We felt we wanted to acquire some well-run businesses and we will make sure we keep the factors that make them so successful. It’s all about efficiency and scale.”

He says Vantex provides a good fit with Provenco’s existing business and its scale and positioning in the Australian market is a good basis for growth.

The owners of both Vantex operations have been contracted for an undefined period and at this stage no redundancies are expected.

Ritchie says the four distributors will be run as one division under a general manager with centres in Sydney, Melbourne, Auckland and Christchurch. Vantex Christchurch will strengthen the existing Transtech business and provide a distribution and warehouse base for the South Island, he says.

The Provenco group has now established five divisions of business: payments, retail automation, supply chain technology, solutions and distribution.

Retail automation supplies the global retail oil industry and currently has 31 customers in 23 countries with a focus on supplying hardware and software.

A Beijing office was opened last year to expand into the wider Asian market and last November was awarded a supply contract with Shell worth $US9m.

Based on these successes and the recent acquisitions, the company has increased its operating profit projection for 2005 from $6m to $7.2m.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Featured

Slideshows

EDGE 2018: Kiwis kick back with Super Rugby before NZ session

EDGE 2018: Kiwis kick back with Super Rugby before NZ session

New Zealanders kick-started EDGE 2018 with a bout of Super Rugby before a dedicated New Zealand session, in front of more than 50 partners, vendors and distributors on Hamilton Island.​

EDGE 2018: Kiwis kick back with Super Rugby before NZ session
EDGE 2018: Kiwis assess key customer priorities through NZ research

EDGE 2018: Kiwis assess key customer priorities through NZ research

EDGE 2018 kicked off with a dedicated New Zealand track, highlighting the key customer priorities across the local market, in association with Dell EMC. Delivered through EDGE Research - leveraging Kiwi data through Tech Research Asia - more than 50 partners, vendors and distributors combined during an interactive session to assess the changing spending patterns of the end-user and the subsequent impact to the channel.

EDGE 2018: Kiwis assess key customer priorities through NZ research
Show Comments