Esprinet has bought Itway Group's Italian, Spanish and Portuguese value-added distribution business.
Itway's VAD business, which generated overall pro-forma sales of €48.6m and €57.2m in 2014 and 2015 respectively and pre-tax profits of €1.7m in 2015, offers IT security solutions, enterprise software and virtualisation products alongside pre and post-sales technical services and training. Itway's holds 30 brands in its Italian VAD portfolio, including Check Point, Red Hat and Extreme Networks, and 20 vendor brands in Spain and Portugal.
Esprinet claims the deal, which is set to close 30 November, is expected to push its V-Valley value-added business to achieve sales in excess of €480m for FY2016.
By the end of the year, the distributor expects to push €400m in sales though its value-added business in Italy and €80m through its Esprinet Iberica subsidiary.
The Vimercate-based company will pay a fixed €5m in cash at the closing date of the acquisition, with up to €5.8m to follow depending on whether economic and financial targets are met.
Esprinet claims the acquisition is consistent with the company's strategic plan laid out last month in "pursuing a further significant acceleration in growing [in] the IT value space".
Esprinet recently laid out a €1bn growth plan to drive annual revenue to €3.75bn by 2018, which equates to a compound annual growth rate of 12 per cent.
The Itway deal is the Italian giant's third acquisition of 2016. Esprinet boosted its enterprise and datacentre expertise through the acquisition of Spanish outfit Vinzeo in June, as well as improving its networking credentials after buying Vimercate-based neighbour EDSLan.
Founded in 1996 in Ravenna, Italy, Itway comprises of three business segments: value-added distribution; networking; and server software. The firm operates in Spain, Portugal, Italy, Greece, Turkey and the Middle East.
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