Menu
​REVEALED: How much did Arrow pay for Distribution Central?

​REVEALED: How much did Arrow pay for Distribution Central?

Global financial reports uncover the final sale price of the Sydney-based distributor.

Arrow Electronics paid $AU67.5 million to acquire Distribution Central, as outlined in the distributor’s recent financial reports.

As reported exclusively by ARN at the time, the Colorado-based distributor acquired Distribution Central for its solutions-driven service provider approach, focusing on next-generation datacentre infrastructure, security, networking and Cloud.

After closing the deal in mid-March, Arrow’s quarterly financial reports show a sizeable return for leaders Scott Frew and Nick Verykios, who acquired the business in 2004.

With Verykios staying on as CEO, and Frew departing to pursue his Cloud-based renewals management software company, iasset.com, Distribution Central will continue to operate independently for at least the next twelve months with the integration process still in its early stages.

Speaking upon closing the acquisition, Arrow president of global enterprise computing solutions business Sean Kerins said the addition of the Sydney-based distributor “expands and strengthens” the company’s business in the value-added distribution marketplace.

“This acquisition supports our strategy to expand Arrow’s portfolio and build strategic capabilities to help meet the evolving needs of our customers,” he said.

As explained by Kerins, Distribution Central - which recently started delivering Hewlett Packard Enterprise (HPE) offerings to the Australian channel - represents an opportunity for Arrow to deepen its ties in the local market, following its acquisition of Observatory Crest in October 2014.

“The combination of Distribution Central and our capabilities from the earlier Observatory Crest acquisition makes Arrow the leading value-added distributor in the region,” Kerins explained.

Since the acquisition, Distribution Central has ramped up its Hewlett Packard Enterprise offering within the channel, having recently acquired the lucrative portfolio following a tender process earlier this year.

Speculating on why Distribution Central won, Verykios told ARN following the decision that without incumbency, the distributor relied on advice and insight from its own channel, to understand what works within the market.

“We’re going to do $400 million this financial year and HPE will add another $200 million to that, it’s a huge deal for us,” Verykios told ARN.

With the introduction of Hewlett Packard Enterprise, and greater market share in Australia as its top priority, the purchase of Distribution Central helps form part of the bigger picture for Arrow, as it prepares for direct competition with Avnet and Westcon-Comstor following its vendor acquisitions.

Locally, Arrow has around 40 staff in Australia and revenue of approximately $4.2 million per employee, while Distribution Central operates 130 staff at around $2.4 million per employee.


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.

Tags Avnetdistribution centralArrow ElectronicsHewlett Packard EnterpriseWestcon-Comstor

Featured

Slideshows

Leading female front runners of the Kiwi ICT industry honoured at 2019 WIICTA

Leading female front runners of the Kiwi ICT industry honoured at 2019 WIICTA

Reseller News has honoured the leading female front runners of the New Zealand ICT industry at the 2019 Women in ICT Awards (WIICTA) in Auckland. The awards recognised standout individuals across six categories, spanning Entrepreneur, Rising Star, Shining Star, Community, Technical and Achievement. Photos by Gino Demeer.

Leading female front runners of the Kiwi ICT industry honoured at 2019 WIICTA
Reseller News kicks off awards season in 2019 with Judges' Lunch

Reseller News kicks off awards season in 2019 with Judges' Lunch

The 2019 Reseller News Innovation Awards has kicked off with the Judges Lunch in Auckland with 70 judges in the voting panel. The awards will reflect the changing dynamics of the channel, recognising excellence across customer value and innovation - spanning start-ups, partners, distributors and vendors. Photos by Christine Wong.

Reseller News kicks off awards season in 2019 with Judges' Lunch
Reseller News welcomes industry figures for 2019 Hall of Fame lunch

Reseller News welcomes industry figures for 2019 Hall of Fame lunch

Reseller News welcomed 2018 inductees - Chris Simpson, Kendra Ross and Phill Patton - to the third running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing landscape of the technology industry in New Zealand, while outlining ways to attract a new breed of players to the ecosystem. Photos by Gino Demeer.

Reseller News welcomes industry figures for 2019 Hall of Fame lunch
Show Comments