Impact Systems reveals plan to acquire 10 resellers

Impact Systems is in the market to acquire 10 system integrators or managed service providers, in a bullish response to the pressure on the white box sector.

Managing director Peter Agamalis revealed the strategy to CRN, saying the distributor is already in M&A talks with two channel partners and is looking for more companies, especially those with contracted revenue streams.

"The companies we are looking to engage should have long-term business history and don't have to necessarily be making a profit as such. Those companies need to be turning over $2 million to $10 million of revenue annually. We will be seeking to acquire up to 10 organisations."

Agamalis wouldn't be drawn on how he plans to bankroll the deals, only saying it would be through a mix of cash and finance. "I would like to keep funding private. It has been taken care of and won't be a problem."

It marks a radical departure from the 15-staff company's traditional position in the distribution tier and would see it establishing a direct route into customer accounts.

While acquired resellers would remain independent businesses, Agamalis said they would be tasked with growing sales of his Impact PC range, which the distie positions as an alternative to tier-one brands such as Lenovo and HP.

"Back in the day, white box products might not have been as reliable. There were many variables in terms of white box products, but those days are gone.

"There used to a be a raft of backyard builders who gave Intel-based products a bad name, but we have been around for 24 years, and I would encourage any reseller to purchase a sample product," he added.

"You will see our delivery is a tier-one approach. It comes in a great-looking box, the drivers are all there in a specific folder, the cabling is done properly, it is a class act. There is not one single retailer who has given us negative feedback on our build."

A major factor behind the acquisition plan is the squeeze on Impact Systems' traditional channel of regional and independent retailers. "They are becoming few and far between - that IT market is dominated by the mass retailers and the online guys."