Exertis has stepped up its M&A drive by acquiring storage distributor Hammer in a £38.3m deal.
Hammer is the latest - and largest - in a string of UK-based acquisitions for broadliner Exertis, whose Anglo-Irish parent, DCC Group, was recently promoted to the London Stock Exchange's FTSE 100.
Exertis said Hammer, which banked operating profits of £6.3m on revenues of £155m in the 12 months ending 31 January 2016 and has 165 staff, will bolster its presence in the mid- and higher-range server and storage market.
Basingstoke-based Hammer also has offices in France, Germany, Sweden, Belgium and the Netherlands.
The deal, which is subject to regulatory approvals, will see DCC Technology - which trades as Exertis -acquire 100 per cent of the issued share capital of Hammer based on an initial enterprise value of £38.3m (€42.7m).
The all-cash consideration will be structured as an initial payment at completion, followed by earn-out payments over three years based on Hammer's results.
Hammer, whose vendors include existing Exertis ally Dell, as well as the likes of Intel, NetApp, Seagate and Western Digital, will continue to operate as a standalone business, Exertis said.
In a statement, Niall Ennis, DCC Technology managing director, said: "Hammer has enjoyed considerable success in providing value-added services and bespoke solutions in a number of vertical markets for their customers and has a well-earned reputation as a storage specialist.
"The acquisition has significant benefits for both companies increasing Exertis' expertise and solutions in the storage market, complementary to our existing server and enterprise business, and providing Hammer customers and vendors with a platform for growth within a diverse and financially strong technology distribution company. In addition, this deepens Exertis' presence across several European countries."
James Ward, Hammer managing director, added: "We see great synergy and opportunities for our customers, vendors and employees in joining Exertis. By leveraging the complementary strengths of both companies we can only add value to what is an exciting proposition for all our stakeholders. We look forward to working with Exertis management teams and building on the success of both companies."
Rumours that Exertis was in talks to acquire the storage VAD were first reported by Channelnomics Europe sister publication CRN UK a month ago.
Vendor warns business to migrate from popular OS or face 'enormous dangers'
Firm looks to double headcount and eyes Swiss and Spanish expansion
Firm pledges to give investors big lift in short- and mid-term bottom line
Acquisition of Canadian AI firm is hailed as a smart move