Dicker Data has deepened its New Zealand footprint with the acquisition of local distributor Connect Security Products Limited for $5 million.
Specialising in access control, surveillance and fire products, CSP has a team of 14 people spread between Auckland, Wellington and Christchurch.
Following the acquisition, CSP’s founder Jason Mackie will continue leading the business, which will run in parallel to Dicker Data’s existing New Zealand operation.
According to an announcement, CSP will leverage shared services such as finance, warehousing, logistics and marketing, with the product and sales functions operating independently.
For its financial year ending 31 March 2023, CSP is on track to generate revenue in excess of $8 million and deliver normalised earnings before interest, tax, depreciation and amortisation (EBITDA) of approximately $780,000.
“Our acquisition of CSP provides a strategic and fast-tracked entry to the New Zealand market for our access and surveillance business,” Dicker Data CEO David Dicker said.
“Given the business holds a strong market share and is already delivering a profitable result, I’m confident that we’ll be able to capitalise on the new opportunities quickly across both Australia and New Zealand to deliver a strong result for our shareholders.”
The company added that the combination of Dicker Data and CSP is expected to deliver “compelling growth opportunities” for both businesses through the combined trans-Tasman network and expanded capabilities.
The deal also forms part of Dicker’s strategy to bring physical and digital security together, calling it a “natural progression to protecting the entire business value chain to ensure a stronger security posture”.
This new acquisition comes almost two years after Dicker Data acquired Exeed in a landmark A$68 million deal, shaking up the distribution landscape in New Zealand.
The company is now looking to build a software empire in Australia and New Zealand (A/NZ), creating a multimillion-dollar business based on enhanced partner services and an expanding vendor portfolio.
Additionally, Dicker Data's et profit after tax during its 2022 financial year fell flat, ending the year-long period with a slight dip of 0.3 per cent, to A$73.4 million, according to an announcement released to the Australian Securities Exchange (ASX) on 10 February.