DCC Technology to Acquire Hammer for £38.3 MillionDistributor of server and storage solutions to resellers in UK and Continental Europe
This is a Press Release edited by StorageNewsletter.com on 2016.10.17
DCC plc, the international sales, marketing, distribution and business support services group, announces that DCC Technology, which trades as Exertis, has agreed to acquire Hammer Consolidated Holdings Limited, distributor of server and storage solutions to resellers in the UK and Continental Europe.
The acquisition is conditional, inter alia, on competition clearance from the European Commission and is expected to complete by the end of December 2016.
Based in Basingstoke, Hampshire and employing 165 people, Hammer distributes server and storage products for a range of suppliers including Dell, Intel, NetApp, Seagate and Western Digital. In addition, it provides product design and build solutions tailored to the requirements of customers in specific industries. Hammer sells to VARs, cloud service providers and system integrators from sales offices in the UK, France, Germany, Sweden, Holland and Belgium. Its business is complementary to Exertis' existing server and storage business, strengthening Exertis' supplier portfolio and adding almost 1,000 reseller customers.
In its financial year ended 31 January 2016, Hammer earned an operating profit of £6.3 million on revenue of £155.0 million.
DCC has agreed to acquire 100% of the issued share capital of Hammer based on an initial enterprise value of £38.3 million.
The consideration will be paid entirely in cash and is structured as an initial payment at completion, followed by earn out payments over three years based on Hammer's future trading results.
Tommy Breen, CEO of DCC plc, said: "The acquisition of Hammer will strengthen the product and service capability offered by Exertis to its reseller customers. In addition, Hammer's expertise will better enable us to take advantage of positive industry trends, including growth in cloud data centers and demand for big data analytics."
DCC plc is an international sales, marketing, distribution and business support services group headquartered in Dublin with operations in Britain, Continental Europe and Ireland. It has four divisions - DCC Energy, DCC Healthcare, DCC Technology and DCC Environmental. In its last financial year ended 31 March 2016, DCC generated revenue of £10.6 billion and operating profit of £300 million and currently employs approximately 10,500 people in 15 countries. DCC's shares are listed on the London Stock Exchange and are included in the FTSE All-Share Index and the FTSE 100 Index.