History 2003: Dexxon Data Media Acquired Digital Storage

The Dexxon Group, owner of European computer media distributor Data Media, has acquired the assets of Digital Storage Inc., itself a leader in the same sector in USA.

According to SEC filings, it comes to $2.6 million, without taking into account the very complicated calculations involving accounts receivable and inventory of the seller. According to a Data Media spokeswoman, the total price will come close $6 million.

OSI Canada is not included in the deal. Debts to suppliers, Exabyte and Quantum first among them, will not be assumed.

OSI, a subsidiary of DaisyTek International, filed for Chapter XI protection in June, along with the parent company.

The 2 media wholesalers on either side of the Atlantic had a relationship that dated back to 1987, and bought each other’s products in a virtually reciprocal manner. Dexxon had even entered a rival bid when DaisyTek acquired OSI in 2001.

Babak Sarshar, one of the founders of Data Media, will assume the direction of the North American company, which will now be known as Dexxon Digital Storage Inc. (DDSI), based in Lewis Center, OH, with some 70 employees, while former president George Babyak, will not stay on. DSl’s former VP sales, Chris Emery, will hold on to his job.

For the fiscal year ended June 2003, OSI posted sales of $108.million. The Dexxon Group, now a 500-person company with subsidiaries DOSI, Dexxon Data Media, Dexxon Belgium and Casio France, including former acquisitions Japel and Noblet, hopes to grow sales to $450 million in the first year, i.e. June 2003 to June 2004, with $263 million in storage alone, the remaining in office supplies and equipment.

The holding company claims it is now the “WW leader specialized in distribution of removable media,” from mainframe magnetic cartridges all the way to CD-Rs, by way of just about everything else under the sun.

This article is an abstract of news published on issue 187 on August 2003 from the former paper version of Computer Data Storage Newsletter.