Arrow reveals it will retire Computerlinks brand in Q2
Infrastructure VAD Arrow ECS will drop the Computerlinks brand name in Q2 as it ploughs on with the integration of the security VAD. The pan-global distributor formed an integration steering team immediately after closing its €230m acquisition of Computerlinks and is now a good way through the integration process. According toLaurent Sadoun, EMEA president of Arrow ECS, Computerlinks would be rebranded under the Arrow ECS Networking and Security banner some time between April and June. In UK, there seemingly are no plans to close any major offices. John Dams, who was sales director at Computerlinks, will now head up Arrow's combined security business, with Arrow's current UK security boss Nick Bannister moving up to a senior European security and networking role. Mark McHale will continue to helm Arrow ECS's UK infrastructure business. Dave Ellis, who was director of new technologies at Computerlinks, retains a similar role at Arrow ECS - but covering the entire UK organisation - in the post of director of strategy and new products. He will report into UK boss Nick Thurlow. Meanwhile, Computerlinks UK founder Mark Norman will stay on board with Arrow as a non-executive director. Computerlinks adds almost €750m to Arrow ECS' revenues, bolstering its strength in existing markets such as the UK and the US and handing it access to new countries and territories such as Australia, India, Italy, the Middle East and Singapore. The duo shares several big vendors, most notably Check Point, Trend Micro, RSA and Blue Coat, but Sadoun said these overlaps were "complementary" and would make the integration process easier. A small number of job cuts may come in Q2 when the back office systems are combined. The integration process will seek also to draw on Computerlinks' skills with its ALVEA cloud offering likely to be developed alongside Arrow's ArrowSphere cloud proposition (source : Channelweb UK).
Arrow ECS signs definitive agreement to acquire Computerlinks
Network and security VAD Arrow ECS has signed a definitive agreement pursuant to which it will acquire its pan-European competitor Computerlinks (an acquisition known internally as Project Castle). According to Michael J. Long, chairman, president and CEO of Arrow, "this acquisition supports our strategy to serve the data center of the future and strengthens our position in this rapidly growing segment." Headquartered in Germany, Computerlinks has operations in Australia, Austria, Belgium, Czech Republic, Denmark, Finland, France, Hungary, India, Ireland, Italy, the Netherlands, Norway, Poland, Singapore, Sweden, Switzerland, the United Arab Emirates, and the United Kingdom. Arrow ECS owns offices in all these countries except Australia, India, Italy, Singapore and the United Arab Emirates. Arrow ECS will thus be able to enter these five new markets. In all other countries, one will have to wait to know more about the practical impact on local teams and distribution partnerships, as we can report many important overlaps in several countries (even if most Computerlinks' vendors do not work with Arrow ECS). Sales in 2013 are estimated to total approximately €1.1 billion, compared to €943 million reported for 2012. This acquisition is expected to be €.15 to €.18 accretive to earnings per share, excluding the impact of the amortization of related intangible assets, in the first year post closing. The purchase price is approximately €230 million, more than twice the €104 million paid by Equistone back in 2008. The acquisition is subject to regulatory approvals and is expected to close in the fourth quarter of 2013. Last major European independant VADs are French Exclusive Networks and Itancia, Italian ITway and British Zycko.
More Trend Micro for Computerlinks
Middle East: already working together in several other countries, network and security VAD Computerlinks has become a distributor for Trend Micro in the Middle East to address increasing customer demand for Internet content security and threat management throughout the region.
Computerlinks fined for Syria trade breach
Middle East: web security vendor Blue Coat Systems has commended US Department of Commerce's Bureau of Industry and Security (BIS) for its enforcement action against network and security VAD Computerlinks in connection with the unlawful diversion of Blue Coat ProxySG appliances to Syria. BIS previously penalized Wassim Jawad and Infotech in 2011 for their involvement in this unlawful transfer. Blue Coat terminated its contractual agreement with Computerlinks ME in 2011 in connection with its investigation into the illegal diversion of its products to Syria. Blue Coat has not sold any products or services to Computerlinks ME since that time. Blue Coat has also taken additional steps to guard against future diversions of its products by third parties and bolster its compliance program. Blue Coat has increased employee training, added new compliance personnel, upgraded its export control screening systems, revised its compliance policies, and implemented new agreements with its channel partners, both direct and indirect, that include extensive compliance commitments. According to Reuters, Computerlinks, which misled Blue Coat by claiming supplier to Iraq and Afghanistan, has been fined €2.12m - the maximum possible amount. In addition to supplying ProxySG appliances for €1.06m in three separate transactions between about October 2010 and May 2011 to the Syrian Telecom Establishment (which controls the access to the Internet in the country), Computerlinks also reportedly provided wrap-around services for the products, which were allegedly used to monitor citizens.
Computerlinks to distribute Skybox Security
Middle East: network and security VAD Computerlinks has entered into a distribution partnership with security risk management vendor Skybox Security.