Peter Agamalis is looking to purchase eight to 10 resellers to support the supply chain requirements of Australian distributor, Impact Systems, of which he is managing director.
Specifically, he is looking for $2 million to $10m systems integrators (SIs), managed services providers (MSPs), and value-added resellers (VARs) with long-term business histories and healthy customer bases on contractual or annuity income models.
These businesses will not fold under Impact. Impact will remain a distributor-only entity, and act as the supply chain for the acquired.
“Technically, they will be separate entities but fall under the ownership of me, not Impact,” Agamalis said.
That said, Agamalis revealed exclusively to ARN on Wednesday that Impact is prepared to abandon its channel-only business model in favour of a direct approach to market.
This comes due to the pressure of a disproportionate market and “lazy resellers” which continue to squeeze its business line.
Agamalis is currently in negotiation with three $2m to $5m resellers under non-disclosure agreements (NDAs). He was unable to disclose the potential value of these deals, nor his overall acquisitions budget. These initial purchases are expected to be complete in the first quarter of calendar 2015.
“There is a three-pronged effect to this acquisition spree,” Agamalis said. “It is taking competition of the market, and is also about encroaching on products that are more aligned with, but not limited to, Impact’s product set.”
“But if a reseller has a particular brand relationship and it’s consistent with its business model, Impact won’t disturb that for the sake of its own product. If it works well, we will keep it aligned with the reseller’s current model. If an opportunity exists where Impact can introduce its own products into the reseller, it will do that.”
While 10 is the initial acquisitions target, Agamalis is prepared to go beyond if necessary.