Articon-Integralis is to sell its pan-European distribution arm, Allasso, to UK storage distributor InTechnology for €25m (£17m).
The distributor will cost an additional €3.77m that will be conditional on a certain level of business between the two companies following the sale.
Articon said that the move would end conflicting business models and free up cash. The separation of its systems integrator Integralis and its distributor Allasso follows long-standing accusations from resellers that the former benefited from insider information and favourable buying terms.
"The Integralis reseller and Allasso distribution businesses have never fitted together naturally and there has been conflict," Scott Duncan, managing director for Northern Europe at Allasso, admitted to vnunet.com. "Competitors have used this to their advantage."
InTechnology is hoping to expand its UK distribution strategy across Europe. Allasso operates in six European countries and also offers InTechnology a new product line.
Steve Pearce, chief operating officer at InTechnology, said the deal created the opportunity to move straight into a new area that might otherwise have taken years to establish.
"We know from our storage experience that you have to find the right people, get vendor partners and build reputation, which takes time," he said.
Pearce added that the two companies have similar business models and security and storage fits well.
Duncan confirmed that the Allasso name would remain and that no jobs would be cut. "Resellers have nothing to worry about because the business will be improved over a period with new investment," he added.
The deal will also free up cash for Articon-Integralis. "It needs to invest in its business and it does not currently have the cash," said Duncan.
InTechnology will add Allasso's 7,000 European resellers to its own UK partner base of more than 500. The combined businesses will have an estimated turnover of about €400m.
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