DCC Technology, better known in the channel as Exertis or Exertis Medium published strong end-of-year results earlier this month. Operating profits grew 17.1% (12.5% on a constant currency basis), reflecting organic profit growth in the UK and Ireland and the benefit of the acquisitions of Hammer and CUC completed in the current and prior year respectively.
DCC Technology is looking to acquisitions to boost momentum in the existing organic grow in its operating margins. The distributors’ acquisitions focus is concentrated on targets with the potential to add value to their technology offering, usually through services such as integration, service and support.
For example, in December 2016, DCC Technology completed the acquisition of Hammer Consolidated Holdings Limited, a specialist distributor of server and storage solutions to resellers in the UK and Continental Europe. Employing 165 people and based in Basingstoke, Hampshire, Hammer distributes products for a range of leading suppliers and also provides product design and build solutions tailored to the requirements of customers in specific industries.
The business is complementary to DCC Technology’s existing server and storage business and added almost 1,000 new reseller customers. In its most recent financial year, Hammer recorded sales of £155.0 million and operating profit of £6.3 million.
DCC MD Gerry OKeffe: reports good growth through a mix of acquisitions and organic growth.
