Dicker Data has announced that it has entered a sale and purchase agreement to acquire New Zealand distributor Connect Security Products (CSP).
Founded in 2010, CSP distributes access control, surveillance and fire products.
This acquisition is considered valuable addition to Dicker Data’s Access and Surveillance (DAS) platform as it will accelerate the launch of the DAS business in the New Zealand market with key brands including Bosch, Sony, Assa Abloy, HID and Motorola.
The acquisition is a net asset purchase and the purchase price of NZD$5.0m comprises of $3.5m for goodwill with balance for net business assets estimated at $1.5m at completion being predominantly for inventory.
An agreement subject to satisfying several conditions is expected to be completed by the end of this month.
Acquiring CSP is expected to help Dicker Data deliver growth opportunities for both businesses through the combined Trans-Tasman network.
Like DAS in Australia, CSP will run in parallel to Dicker Data’s existing New Zealand operation, leveraging shared services such as finance, warehousing, logistics and marketing, with product and sales functions operating independently.
Dicker Data believe that having a local NZ distie like CSP will provide the company with a competitive advantage in the region.
CSP’s majority shareholder and founder, Jason Mackie, will continue leading the business post-acquisition, including managing a team of 10 Auckland-based staff, 2 Christchurch-based staff and 2 Wellington-based staff, as well as three branch locations located throughout New Zealand.
For its financial year ending 31 March 2023, CSP is on track to generate revenue in excess of NZD $8.0m and deliver normalised EBITDA of approximately NZD $780,000.
Dicker Data chairman and CEO David Dicker said, “Our acquisition of CSP provides a strategic and fast-tracked entry to the New Zealand market for our access and surveillance business.”
“Given the business holds strong market share and is already delivering a profitable result, I’m confident that we’ll be able to the capitalise on the new opportunities quickly, across both Australia and New Zealand to deliver a strong result for our shareholders.”
Dicker Data said they are continuing to examine adjacent sectors to identify growth opportunities.
Last week Dicker Data released its unaudited 2022 financial year results, recording a 25 per cent revenue increase of $619.9 million to $3.1 billion year-on-year.
CRN Australia also recently spoke to Dicker Data’s general manager of marketing and strategy, Ben Johnson, about how the company is looking to help its partners capitalise on demand for environmentally sustainable IT solutions.
Earlier this month, Dicker Data picked up China-headquartered unified communications vendor Yealink, distributing the full range of its products to the Australian market. In January,
Dicker Data added the Cyber Aware training and phishing attack simulation platform and WatchGuard Technologies’ entire cybersecurity product range to its portfolio.