Two former big names in the Digital Equipment channel are to be merged into more general groups. Yorkshire-based ITE is to merge two of its subsidiaries, Digital reseller ESS and Internet service provider Planet Online, in the New Year. Meanwhile, one of Digital's top 10 resellers, Hamilton Rentals, is to be acquired by Compel Group, a broad-based corporate Var.
ITE plans to to form a one-stop shop for corporate Internet and Intranet requirements from its combined units, which will take the Planet Online name.
?The days of the product reseller are numbered. Margins are getting tighter and tighter,? said Phil Wade, marketing director of ITE. ?ESS? networking and systems skills will fit the requirements of the under-serviced business Internet and Intranet market,? he said.
Compel will acquire Hamilton Rentals for up to #14.535 million and an 11-for-18 rights issue to raise approximately #15.19 million. Hamilton?s rental and midrange systems activities will be integrated with Compel?s activities but the company will continue to operate in the Digital market place under the Hamilton Rentals brand name.
John Nicholson, Digital?s UK and Ireland systems channel manager, said he had been kept abreast of the plans of both companies. ?It's good news on both fronts,? he said. ?We?ll be looking to Planet as a key driver in our Intranet strategy and Hamiltons will increase in both size and coverage.?
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